As a result, their losses cannot exceed the amount which they contributed to the corporation as dues or payment for shares. The economic rationale for this is that it allows anonymous trading in the shares of the corporation by eliminating the corporation’s creditors as a stakeholder in such a transaction. Without limited liability, a creditor would probably not allow any share to be sold to a buyer at least as creditworthy as the seller. Another way a corporate structure can be defined is by business divisions. A division of a business is a distinct part of the firm, however the company is legally responsible for all of the obligations and debts of each division. In a large organization, various parts of the business may be run...