26 lines
639 B
Markdown
26 lines
639 B
Markdown
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<!-- generated: provider=openrouter model=arcee-ai/trinity-large-preview:free date=2026-02-19 source=book-4-chapter-05 -->
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# Joint-Stock Company
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## Definition
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A business organisation where capital is contributed by multiple shareholders
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who share in the profits and losses, often established with special government
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privileges or monopolies.
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## Source Chapter
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Book IV, Chapter 5
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## Context
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Smith uses the example of the white herring fishery joint-stock company to
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show how government bounties and special privileges can lead to inefficient
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capital allocation and eventual business failure.
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## Economic Domain
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General Theory
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---
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