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What is corporation ?

Sagot :

Ziandykate

What is Corporation?

A corporation is defined as the legal form of business that is separate from its owners. In other terms , it is defined as a business that is a separate legal entity from its shareholders.

The basic corporate structure consists of the following:

  • Shareholders (this includes the stakeholders, inventors and people who actually own the company.) They are stockholders and legally own the assets of the cbusiness.
  • Board of Directors (appoints and oversees the management of the corporation's day-to-day activities)
  • Officers

Characteristics of a Corporation

  • Separate legal entity from its shareholders (owners will never be held personally liable for what the company loses.)
  • Bound by Articles of Incorporation (includes the number of shares that will be authorized as well as the meeting and board of director information)
  • Owners are known as shareholders or stockholders
  • Limited Liability ( The shareholders can lose is their investment only in the business if the company goes bankrupt as owners are separate legal entity). This main advantage of being a corporation as the from of the business.
  • Not all corporation are profit-oriented.

For further details about The law that manages Corporations https://brainly.ph/question/1218190

To know related information about the Difference between incorporators and corporators https://brainly.ph/question/2617575

Are government corporation considered as business? https://brainly.ph/question/553852

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