rters are not granted individuals may
voluntarily associate, and by complying with the provisions of certain
State laws may take to themselves corporate powers. In some of the
States private corporations are not suffered to be created otherwise
than under general laws, and in others public corporations are created
in the same way.

FOOTNOTE:

[9] For a preliminary treatment of the subject of this lesson the
student is referred to Part I. of this book, entitled "General
Business Information," especially Lessons XII. and XV.

A CORPORATION MUST HAVE A NAME

A corporation must have a name by which it shall be known in law and
in the transaction of its business. The name is given to it in its
charter or articles of association and must be adhered to. The
necessity for the use of the corporate name in the transaction of
business follows from the fact that in corporate affairs the law knows
the corporation as an individual and takes no notice of the
constituent members.

CORPORATE INTERESTS

In municipal corporations in the United States the members are the
citizens; the number is indefinite; one ceases to be a member when he
moves from the town or city, while every new resident becomes a member
when by law he becomes entitled to the privileges of local
citizenship. In corporations created for the emolument of their
members interests are represented by shares, which may be transferred
by their owners, and the assignee becomes entitled to the rights of
membership when the transfer is recorded; and if the owner dies his
personal representative becomes a member for the time being. In such
corporations also shares may be sold in satisfaction of debts against
their owners.

ADVANTAGES OF CORPORATIONS AND JOINT-STOCK COMPANIES OVER PARTNERSHIPS

The following are given as a few of the advantages which are claimed
for corporations and joint-stock companies over partnerships:

1. Union of capital without the active service of the investors.

2. Better facilities for borrowing. It is a common thing for a
partnership to be changed to a stock company for the express purpose
of raising money by the issue of bonds or stock.

3. Limited agency of directors. A partner may pledge and sell the
partnership property, may buy goods on account of the partnership,
may borrow money and contract debts in the name and on the account
of the partnership. Directors of a joint-stock company must act in
accordance with the