What did you understand by corporations?
Understand the Problem
The question is asking for an explanation or definition of what corporations are, likely seeking to understand their structure, purpose, and functions in the economy and society.
Answer
A corporation is a legal entity separate from its owners, created by state authorization to conduct business and own assets.
A corporation is a legal entity created and recognized by a state, separate from its owners, and it operates as an individual person in the eyes of the law, capable of owning assets, incurring liabilities, and conducting business.
Answer for screen readers
A corporation is a legal entity created and recognized by a state, separate from its owners, and it operates as an individual person in the eyes of the law, capable of owning assets, incurring liabilities, and conducting business.
More Information
Corporations are popular for providing limited liability protection to their owners (shareholders) and facilitating capital raising through stock issuance.
Sources
- Corporation: What It Is and How to Form One - Investopedia - investopedia.com
- Corporation: Definition, Types, & Key Characteristics - Carta - carta.com
- Corporation: What It Is and How to Form One - en.wikipedia.org
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