Many corporations are formed simply so individuals may hide themselves from debts. Serious flaws exist in this respect and are in need of reform. Argue both sides of this statement and render a conclusion.

This is a second question with respect to social value versus social harm. Undoubtedly the corporate form does serve to shield individuals from debt and the corporation is only as morally good as the shareholders behind it. On the other hand, many enterprises require so much capital that if personal liability could be attached to the accumulation of capital, no one would be willing to undertake useful social enterprises such as constructing buildings and hydro dams. In between lies a compromise, wherein investors must examine those persons behind the corporation before deciding whether to invest in it or loan money, and hopefully sufficient disclosure is required of corporations to allow these decisions to be informed decisions.