Corporations are towers on the business landscape.
Corporations tend to be large so they play a huge role in a Country. A corporation has many layers of management, they're 20 times greater sales from proprietorship, & 6 times greater than partnerships. They're also owned by a group, and can sure in their own name. Not all corporations are large. Some small exist.
A group of people, meaning they have to agree on the same things. (Ex. people shaking hands agreeing on something.)
A group discussing their business, and what they should do.
A few corporations in business.
In a corporation you can borrow money, make contracts, own property, and sue or be sued in its own name Stockholder, is owners of a corporation. Ownership is divided, and they have to share. The owners have many rights, such as buying new shares of stock, share in net proceeds, can transfer ownership to others, vote for members of the ruling body, etc. There is no liability beyond the extent of a stockholder. Directors is the ruling body of the corporation. Directors have management oversight responsibilities. Officers of a corporation are the top executives who are hired to manage the business. There is a president, secretary, and a treasurer. A close corporation does not offer shares of stock for public sale. An open corporation offers its shares of stock for public sale. There are steps for having a business such as naming the business, stating the purpose of the business, investing your time and money in the business, paying fees and cost, and starting up the business.
- A corporation is an independent legal entity owned by shareholders. This means that the corporation is held legally liable for the actions and debts the business owe.
- A corporation is formed under the laws of the state in which it is registered. To form a corporation you have to pick out a name and register your legal name with your state government to make sure it is open.
- Advantages- limited liability, they can raise funds, tax treatments, they usually have more employees than other businesses.
- Disadvantages- they are costly, time management, and a lot of work!