Commercial companies have gone through various developments in history. The Iranian lawyers have generally focused on the legal aspect of a company and paid little attention to its economic aspect. From a legal point of view, a company is not a mere legal entity, but it is also a tool for the organization and direction of economic activities. Nowadays, the company has gone far from its traditional definition and is much regarded as an economic entity with which governments have to interact. This paper aims at dealing with the issue of companies from an economic point of view, discussing four major economic theories, namely neoclassic theory, agency theory, transaction cost theory and property right theory.
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