---
entity_slug: regulated_company_versus_joint_stock_company_comparison
evaluator: null
evaluated_at: '2026-02-23T06:16:43.952479'
overall_score: 4.6
scores:
- name: definition_precision
  value: 4.0
  max_value: 5.0
  rationale: The definition clearly distinguishes between two distinct organizational
    forms - regulated companies where members trade individually versus joint-stock
    companies with pooled capital and shared profits. The distinction is precise and
    non-circular, though it could benefit from slightly more specificity about the
    operational mechanics.
- name: source_grounding
  value: 5.0
  max_value: 5.0
  rationale: This comparison is directly grounded in Smith's detailed analysis in
    Book V, Chapter 1, where he extensively examines different forms of trading companies
    and their relative merits. Smith explicitly discusses both regulated companies
    (like the Hamburgh Company) and joint-stock companies (like the East India Company)
    with their distinct organizational structures.
- name: domain_placement
  value: 5.0
  max_value: 5.0
  rationale: The "Exchange" domain is perfectly appropriate as this entity deals with
    different organizational structures for conducting trade and commerce. The comparison
    directly relates to how commercial exchange is organized and managed across different
    institutional forms.
- name: vsm_relevance
  value: 4.0
  max_value: 5.0
  rationale: This entity maps well to multiple VSM systems - S1 (different operational
    structures), S3 (internal regulation and management differences), and S4 (adaptation
    to different market conditions). The comparison illuminates how organizational
    structure affects system viability and management effectiveness.
- name: explanatory_value
  value: 5.0
  max_value: 5.0
  rationale: This entity provides significant explanatory power by revealing the structural
    trade-offs between individual versus collective organization of commercial activity.
    It illuminates fundamental mechanisms of risk distribution, management incentives,
    and operational efficiency that apply broadly to organizational design.
---

# Evaluation: Regulated Company Versus Joint Stock Company Comparison

## definition_precision — 4.0 / 5.0

The definition clearly distinguishes between two distinct organizational forms - regulated companies where members trade individually versus joint-stock companies with pooled capital and shared profits. The distinction is precise and non-circular, though it could benefit from slightly more specificity about the operational mechanics.

## source_grounding — 5.0 / 5.0

This comparison is directly grounded in Smith's detailed analysis in Book V, Chapter 1, where he extensively examines different forms of trading companies and their relative merits. Smith explicitly discusses both regulated companies (like the Hamburgh Company) and joint-stock companies (like the East India Company) with their distinct organizational structures.

## domain_placement — 5.0 / 5.0

The "Exchange" domain is perfectly appropriate as this entity deals with different organizational structures for conducting trade and commerce. The comparison directly relates to how commercial exchange is organized and managed across different institutional forms.

## vsm_relevance — 4.0 / 5.0

This entity maps well to multiple VSM systems - S1 (different operational structures), S3 (internal regulation and management differences), and S4 (adaptation to different market conditions). The comparison illuminates how organizational structure affects system viability and management effectiveness.

## explanatory_value — 5.0 / 5.0

This entity provides significant explanatory power by revealing the structural trade-offs between individual versus collective organization of commercial activity. It illuminates fundamental mechanisms of risk distribution, management incentives, and operational efficiency that apply broadly to organizational design.
