Corporation is a type of business. A separate organization from those persons who run it. A corporation provides limited responsibility, easy transfer of ownership and unlimited life.
More to this???please????
http://en.wikipedia.org/wiki/Corporation
Certainly! Let me break down the key characteristics of a corporation and explain each concept in more detail.
1. Separate organization from those who run it: A corporation is a legal entity that is separate and distinct from its owners, known as shareholders or stockholders. This means that the corporation itself is responsible for its actions and liabilities, rather than the individuals who own or run the business. This separation provides a level of protection for shareholders, as their personal assets are generally not at risk in the event of the corporation's financial or legal troubles.
2. Limited liability: Limited liability is a fundamental feature of corporations. It means that shareholders are only liable for the debts and obligations of the corporation up to the amount they have invested in the business. In other words, their personal assets are shielded from being used to satisfy corporate liabilities. This limited liability protection encourages investment in corporations, as it mitigates the financial risks for individual shareholders.
3. Easy transfer of ownership: Corporations offer an advantage when it comes to transferring ownership. Ownership in a corporation is represented by shares of stock, which can be easily bought and sold. Shareholders can transfer their ownership interest in the corporation by selling or gifting their shares to others. This facilitates the transfer of ownership without disrupting the continuity of the business.
4. Unlimited life: Unlike other forms of business, such as sole proprietorships or partnerships, corporations have perpetual existence. This means that corporations can continue to exist regardless of changes in ownership, management, or the death of individual shareholders. The corporation's existence is not tied to the lifespan or involvement of any specific individual, allowing for long-term planning, stability, and potential for growth.
In summary, a corporation is a type of business structure that offers benefits like limited liability, easy transfer of ownership, and unlimited life. These features make corporations an attractive option for individuals or groups looking to establish a separate legal entity for their business activities.