CORPORATION Meaning and
Definition
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A corporation is a legal entity or body established by a group of individuals or shareholders for the purpose of conducting business activities. It is recognized as a separate entity from its owners, often referred to as shareholders or stockholders, thereby affording it certain rights and responsibilities under the law.
Corporations are typically formed by filing the appropriate legal documentation, such as articles of incorporation, with the government agency responsible for business registration. This process grants the corporation limited liability, meaning the shareholders' personal assets are protected in the event of any financial liabilities or legal claims against the corporation.
One fundamental characteristic of a corporation is its ability to issue shares of stock, which represents ownership in the company. These shares can be bought and sold on stock exchanges, allowing for the participation of a large number of shareholders. The shareholders elect a board of directors who are responsible for making strategic decisions and overseeing the management of the corporation.
The primary goal of a corporation is to maximize profits for its shareholders while operating within the legal framework and meeting its social responsibilities. This legal structure also enables corporations to enter into contracts, sue or be sued, and engage in other legal activities as an individual entity. The corporate form of organization offers advantages such as perpetual existence, the ability to raise capital through stock issuance, potential tax benefits, and increased credibility with business partners and customers.
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A number of individuals formed into one body, and authorised by law to act as one person; the municipal authorities of a town or city.
Etymological and pronouncing dictionary of the English language. By Stormonth, James, Phelp, P. H. Published 1874.
Top Common Misspellings for CORPORATION *
* The statistics data for these misspellings percentages are collected from over 15,411,110 spell check sessions on www.spellchecker.net from Jan 2010 - Jun 2012.
Other Common Misspellings for CORPORATION
Etymology of CORPORATION
The word "corporation" has its roots in Latin. It comes from the Latin word "corpus", which means "body". The term developed from the concept of a group of individuals coming together as a legal entity with a common purpose or objective. This idea was often symbolized by the notion of a collective body, hence the association with the word "corpus". Over time, the term "corporation" was adopted by various languages, including English, to refer to an incorporated entity recognized as a legal person, separate from its owners or members. The etymology of the word reflects the concept of a corporate entity as a unified body.
Similar spelling words for CORPORATION
- corporate,
- Cribration,
- carburetion,
- corroborate,
- corroboratory,
- corporal,
- corporate bond,
- corporeal,
- corporeality,
- corroborant,
- "Corporation,
- corroborative,
- carburation,
- in-corporation,
- corroborated,
- corroboration,
- cooperation.
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