Facebook intended to launch a new cryptocurrency, known as Libra, but it has faced increased scrutiny from regulators, both in the United States and abroad. Libra would supposedly have permitted financial transactions to be done worldwide, without relying on Wall Street banks or other financial institutions. Although Facebook had initially managed to secure the partnership of major companies like Mastercard, Visa, eBay and PayPal, most of these partners have since dropped their support. As a result, Libra appears to be in serious trouble, and it is unclear whether it will ever launch at all. Continue reading “Facebook’s New Cryptocurrency Faces Regulatory Scrutiny”
Tag: financial liability
Why Incorporate?
Even though corporations are an omnipresent part of day-to-day life in the modern world, many people don’t know what a corporation is, or why someone would want to incorporate their business in the first place.
A corporation put simply, is a legal entity that exists independently of the people who own and run it. Due to what is known as “the legal fiction of corporate personhood,” corporations are treated as legal “persons” for a variety of purposes, most significantly for the purposes of legal and financial liability. In other words, when a business loses money or gets sued, it would normally be the business’ owner or owners that are held responsible for paying off the business’ debts or paying for any legal judgments. However, when a business is incorporated, those losses and judgments are generally incurred by the corporation, not the owners, and so the owners generally aren’t held responsible if the company can’t pay for everything and goes bankrupt.
Continue reading “Why Incorporate?”
