What are the characteristics of a corporation?

They can enter into contracts, loan and borrow money, sue and be sued, hire employees, own assets, and pay taxes. A distinguishing characteristic of a corporation is limited liability. Its shareholders profit through dividends and stock appreciation, but they are not personally liable for the company's debts.

What is a corporation & how does it work?

What is a corporation? A corporation is a legal business entity created by filing a certificate of incorporation or Articles of Incorporation with a state. It is a popular business structure because it provides liability protections for business owners and offers them the ability to raise money by issuing shares of stock.

Why is a corporation a popular business structure?

A corporation is a popular business structure that provides liability protections to owners and allows them to raise money by issuing stock. What is a corporation? A corporation is a legal business entity created by filing a certificate of incorporation or Articles of Incorporation with a state.