@mindlessobserver
@Save the Loli
What I know about the corporation is that its Western form (they had a version in the Orient, but I have no familiarity with it) originates from the Romans and rests on the concept of legal personhood. That is, a group (or "body," as we may say) a people may, through some kind of collective enterprise, form, in their collectivity, an identity that transcends the individual and is a legal body unto itself. Body, corpse, corporeal form,
corpus, corporation. There's a common root.
Why did the Romans develop this? Well, any culture that has become advanced enough to develop the state has to deal with the issue of how to manage the separate identity of the ruler from that of the state they rule. This pressure isn't equal on all societies, though, nor will they necessarily develop the same solution. In monarchies it's not that big of a deal, because the monarchy is usually inherited and can be, in some sense, thought of as the property of the ruler. That's not exactly correct, you have issues like religious legitimacy, consent of the aristocracy and so on, but in some loose ways this work. The king dies, his assets and liabilities go to his successor.
In a democratic or republican society this doesn't work. Your head of state/government can and will change frequently, change between lineages, and change during the lifetime of the ruler, to the point that the assets and liabilities of the ruler MUST be legally separated from the assets and liabilities of the public. The government is not private property in republican society.
How did cultures like Athens and Carthage manage this? I have no fucking clue. But in Rome they invent the corporation and then they start to use it for all kinds of different things, both political offices/government agencies, religious institutions, mutual aid societies, and other such things. All things that would also technically be corporations today - city/state/federal governments have legal personhood, you can sue them, they can own property and so on - but there was no common
business corporation
as such, nor any concept of joint stock.
After the Roman Empire fell, the Christian portion of it preserved the corporate concept while the Islamic portion did not. The reasons are long and complicated (Kuran's
Long Divergence studies it), but the short of it was that the Christians had a perfectly good body of law to use, whereas the Muslims implemented their own alien legal code (Sharia) and it was not amenable to internal reform. (Kuran argues that this is one of the big reasons the Muslims, master navigators, failed to become successful overseas colonizers). The corporate concept was useful to the Catholics for their own Church, monasteries, monastic orders, guilds, city charters, and other such things. In this time you first start seeing corporate-like structures being used for business (monasteries as cooperative firms, Templars as international bankers, etc.), but private profit is not the rationale.
Finally, the business corporation emerges in its modern form as a result of global trade. Before the Age of Exploration there is no reason to form a business corporation because there is no industry where economies of scale are so large that a private individual couldn't reasonably run the business themselves. International trade, colonization and conquest are all extremely risk, however, and so while individuals COULD gamble their livelihoods on private ship ownership - many did - it was far more safe for many people to pool their money to start a very large firm where losses (catastrophic to a small owner) would be offset by successes. Since they're mobilizing massive numbers of people to fund them, they invent joint stock ownership as a way to simplify the governance/negotiating process.
In those days a corporate charter was still a privilege the ruler had to award, and so these corporations were always pitched as serving some sort of public good. This was easy, because the profit-seeking always went hand-in-hand with expanding the empire. The conquistadors funded their operations like a type of venture capital, not exactly corporate but still issuing shares to merchants to buy their equipment, and effectively opening "franchises" (so to speak) of the Spanish Empire. The early British North America colonies did the same (Virginia and New England), but they tended to lose their corporate status quickly. And the great company-states - British and Dutch East India Companies most notably, but Hudson Bay and Dutch West India also stand out - acting as, effectively, private governments that were vassals of larger public empires.
The state also worked with the merchant class to develop large banking corporations as a way to consolidate financial resources, make one big lender that could be the king's moneylender on a much grander scale. In the United States this was done too with the various state and federal banks, and from that you get the concept of the central bank long before monetary policy was ever developed.
Anyways, you all probably know a lot more details to flesh that out. Short of it, I guess, is you're both right. It's a republican institution in origin, that is itself republican in concept (shareholders will vote for representatives to manage the enterprise on their behalf), but its revival and its marriage to capitalism came about because corporations and colonial empires were a match made in heaven.