What is a firm?
This may not seem like a question in lack of an answer. In the United States, as in most other countries, it is a registered, regulated entity acting legally as a person. But economically, the legal definition is irrelevant: the economic function of the "firm" is not its legal status — if it were, then the law rather than the organization would provide the market with that function.
So could there be firms without corporate law?
The answer is obvious: firms exist and are an important part of modern markets today just as they existed and provided a vital function before the law defined and certified such organizations.
Indeed, one can easily argue that corporate law is primarily about government taxation and regulation of the market — and defines the firm only as a means toward these ends.
Consequently, the..............................
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