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a loan to purchase capital, but they hang on to that money. One of the chief uses of the limited liability feature of the modern business corporation is to protect those private accumulations.

Instead, someone who is thinking rich comes up with a viable plan to produce a good or a service. He or she does not sell the idea, but secures a contract to produce the good or service. Using this contract as collateral, this rich-thinking entrepreneur secures financing to develop the idea and supply the customer with the agreed-upon good or service - and at the same time goes out and gets more customers to make the business grow. Thus, by using someone else's money, everybody benefits: the entrepreneur, the financing source, and especially the customer who obtains a desired good or service.

Suppose, however, you lack that spark of entrepreneurship? All is not lost. If that is the case, you seek out others with the skills and talents you lack, get organized, and by using the human race's unique talent for directed specialization, each fills a role in the enterprise, with the combination of individuals making something that is greater than the sum of its parts. Again, the modern business corporation is custom-made for this type of organizing, allowing many individuals to function as a single economic unit, gaining bargaining power in getting financing, market share, and serving the customer more efficiently.

One caveat: When organizing with others, it's important that, whenever possible (regardless of the economic value of the labor supplied), each person in the endeavor is treated legally and economically equal as an owner. A participant in a business with ten people should, ideally, have ten percent of the total ownership - even if he or she is paid 90% of the total wage or salary expense. If this is not done, people within the organization tend to start considering themselves better or worse than the others if they don't share equally as owners without regard to their other contributions.

For example, one business I helped organize takes half its net margin and divides it equally among all the shareholders in a Subchapter S Corporation. Everyone has the same number of shares, and the same number of votes for the board of directors. The other half of the margin is voted on, with every shareholder having a say in what everyone receives as compensation for labor, based on the assessment of the entire body of worker-owners. Admittedly it is a small company with only five

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