The most important aspect of a corporation is limited liability. That is, shareholders have the right to participate in the profits, through dividends and/or the appreciation of stock, but are not held personally liable for the company's debts.
Corporations are often called "C Corporations".
A corporation is created (incorporated) by a group of shareholders who have ownership of the corporation, represented by their holding of common stock. Shareholders elect a board of directors (generally receiving one vote per share) who appoint and oversee management of the corporation. Although a corporation does not necessarily have to be for profit, the vast majority of corporations are setup with the goal of providing a return for its shareholders. When you purchase stock you are becoming part owner in a corporation.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
corporation — cor·po·ra·tion /ˌkȯr pə rā shən/ n [Late Latin corporatio, from Latin corporare to form into a body, from corpor corpus body]: an invisible, intangible, artificial creation of the law existing as a voluntary chartered association of individuals… … Law dictionary
Corporation — • An association recognized by civil law and regarded in all ordinary transactions as an individual. An artificial person Catholic Encyclopedia. Kevin Knight. 2006. Corporation Corporation … Catholic encyclopedia
corporation — [ kɔrpɔrasjɔ̃ ] n. f. • 1530; angl. corporation « réunion, corps constitué », du lat. médiév. corporari « se former en corps » 1 ♦ Hist. Association d artisans, groupés en vue de réglementer leur profession et de défendre leurs intérêts. ⇒… … Encyclopédie Universelle
Corporation — Cor po*ra tion (k[^o]r p[ o]*r[=a] sh[u^]n), n. [L. corporatio incarnation: cf. F. corporation corporation.] A body politic or corporate, formed and authorized by law to act as a single person, and endowed by law with the capacity of succession;… … The Collaborative International Dictionary of English
Corporation — (englisch – ‚Körperschaft‘ – von lateinisch corpus ‚Körper‘) steht für: eine Form der Aktiengesellschaft in Kanada, siehe Aktiengesellschaft (Kanada) eine Form der Aktiengesellschaft in den Vereinigten Staaten von Amerika (USA), siehe… … Deutsch Wikipedia
Corporation$ — Studio album by Cancer Released 2004 Genre Death metal Length 21:13 … Wikipedia
corporation, C — n. A corporation formed under Subchapter C of the Internal Revenue Code; also called a Subchapter C corporation. The Essential Law Dictionary. Sphinx Publishing, An imprint of Sourcebooks, Inc. Amy Hackney Blackwell. 2008 … Law dictionary
corporation — Under Title 11 U.S.C. Section 101: (9) The term corporation (A) includes (i) association having a power or privilege that a private corporation, but not an individual or a partnership, possesses; (ii) partnership association organized under a law … Glossary of Bankruptcy
corporation, S — n. A small corporation that can have its taxable income taxed to its shareholders to avoid corporate income tax. The Essential Law Dictionary. Sphinx Publishing, An imprint of Sourcebooks, Inc. Amy Hackney Blackwell. 2008 … Law dictionary
corporation — [kôr΄pə rā′shən] n. [ME corporacioun < LL(Ec) corporatio, assumption of a body, incarnation < pp. of L corporare: see CORPORATE] 1. a legal entity that exists independently of the person or persons who have been granted the charter creating … English World dictionary
Corporation — Corporation. Verbindung physischer Personen zu einer einzigen juristischen Person; das Vermögen gehört ausschließlich ihr; sie allein wird Gläubiger und Schuldner, nicht die Mitglieder (Gemeinden, Gilden, Zünfte, Klöster, Universitäten,… … Herders Conversations-Lexikon