In this type of proprietorship the individual owners called stockholders are liable for the debts of the business only to the extent of their stockholding, in some states to double the par value of their stock. The stockholders have a voice in the affairs of the business only to the extent of their ownership of stock, such ownership being evidenced by certificates of stock issued in proportion to the number of shares of stock owned. State laws are voluminous and restrictions are numerous for the regulation of corporations. The organization must be made according to law and then incorporated. It must conduct its work according to definite requirements, file regular reports, pay special taxes, and so on. The business is conducted through a board of directors elected by the stockholders at regular intervals of time specified in the articles of incorporation. The board of directors usually elects its own officers and appoints a manager or managers for the business. The operation of the business is under the direction of a manager, who may as a rule appoint his assistants and employees, unless this latter be designated to under officers. The manager is under the supervision of the board of directors, and the directors hold their office at the hands of the stockholders. So that the real owners have only an indirect supervision over the affairs of the business. The corporation is given a name and seal and is empowered to act as an individual, may borrow money, own property, sue and be sued. Notwithstanding its somewhat cumbersome machinery the corporation is a favorite form of organization possibly because of its limited liability feature, its close centralized control even though the ownership be spread over large numbers, and the amount of money handled be great. The large transportation companies, the railways, the steamship lines, electric street cars, canals, trolley lines, pipe lines, and so on, when held under private ownership, are all organized in this manner. There are many bus lines and many truck lines already incorporated, and with time the number will, no doubt, rapidly increase. The shares of stock usually have a par value of $100. These are sold to investors to obtain the working capital. The amount of stock is limited by the articles of incorporation and must not exceed by the laws of most states an amount conducive to good business. The stock may be either common or preferred. Holders of preferred stock have some preferment such as drawing a definite fixed rate of interest while common stock receives no dividends until the interest on the preferred stock is paid. Corporations may also raise money by selling bonds. These are certificates of indebtedness, bearing a fixed rate of interest, payable at definite fixed periods. Like other bonds they may be either sinking-fund, serial or annuity. Bonds differ from stocks in that their owners have no voice in the affairs of the corporation.