Corporation is liable for the actions and finances of the business – the shareholders are not. It is a firm that meets certain legal requirements to be recognized as having a legal existence, as an entity separate and distinct from its owners. It actually enjoy most of the rights and responsibilities that an individual possesses; that is, a corporation has the right to enter into contracts, loan and borrow money, sue and be sued, hire employees, own assets and pay taxes. It is often referred to as a “legal person.” It come in many different types but are usually divided by the law of the jurisdiction where they are chartered into two kinds: by whether or not they can issue stock, or by whether or not they are for profit.
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