=2.= Corporations may be divided into two general classes--public and private. A _public_ corporation is a political entity organized for the purposes of government--as a city, county, or village. A _private_ corporation is one organized to further the interests of its members. These may be divided into two classes--stock corporations and non-stock corporations. A _stock_ corporation is one organized for the pecuniary gain of its members. A _non-stock_ corporation is one organized to further a particular object--as clubs, charitable associations, societies for scientific research, etc. Stock or business corporations are the ones with which we are chiefly concerned. Such corporations are organized to enable several persons to unite their capital to conduct a legitimate business enterprise and such organization accomplishes two important results; the rights of the members to transfer their interest without affecting the standing of the business, and exemption from personal liability for contracts or acts of the corporation. In a partnership, each individual partner is liable for the debts of the partnership, and any partner can make contracts in the name of the partnership, such contracts becoming obligations of net only the partnership but of each individual partner. A member or stock holder in a corporation is, as a rule, liable only for the amount of his subscription to the capital stock of the corporation. The exception to this is the organization of certain classes of corporations in which it is provided that a stockholder shall be liable for twice the amount of his stock subscription. National Banks are examples of this class. No stockholder, as such, has the right to make contracts in the name of the corporation, and any contracts he may make are not binding on the corporation. Contracts made in the name of the corporation, to be binding, must be executed by an officer duly authorized to make such contracts. =3. Joint Stock Companies.= _How distinguished from corporations._ A joint stock company is a large partnership in which the capital is divided into shares which are distributed among the partners in proportion to their interests. Joint stock companies differ from corporations and are like partnerships in the following respects: Each member is liable for the debts of the company, and if he sells his shares he is still liable for the debts which were contracted while he was a shareholder. Except when otherwise provided by statute, all members must join in any action at law by the company, and if another brings an action against the company he must join as many shareholders as he wishes to hold. In some states the law provides that an action against a joint stock company may be brought in the name of its president or other designated officer representing all the members. =4. Joint Stock Companies.= _How like Corporations._ A joint stock company is like a corporation and differs from a partnership in the following respects: