PRIVATE CORPORATION Meaning and
Definition
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A private corporation, also known as a privately-held corporation, is a legally recognized entity that is established by individuals for various purposes, typically for conducting business activities. It is characterized by two key features: it is privately owned and its shares are not publicly traded on stock exchanges.
As a privately-held corporation, ownership is limited to a relatively small group of shareholders, often including founders, employees, and select individuals or entities who have acquired shares through investment or other means. These shareholders hold equity in the corporation and benefit from any profits and growth generated by the company. However, their ownership stakes are not made available for purchase by the general public on stock markets.
Private corporations are generally subjected to fewer regulatory requirements and less public scrutiny compared to public corporations, allowing for greater flexibility in decision-making and corporate governance. Shareholders typically have a larger influence on the corporation's operations and strategic direction. Moreover, private corporations have more control over their image, financial information, and disclosure practices than public corporations.
The primary objective of private corporations is to generate profits and increase shareholder value. They have the freedom to pursue long-term growth strategies and focus on particular sectors or markets without facing short-term pressures from public investors. They also have the advantage of maintaining privacy, as their financial statements and other sensitive business information are not made available to the general public.
Common Misspellings for PRIVATE CORPORATION
- orivate corporation
- lrivate corporation
- -rivate corporation
- 0rivate corporation
- peivate corporation
- pdivate corporation
- pfivate corporation
- ptivate corporation
- p5ivate corporation
- p4ivate corporation
- pruvate corporation
- prjvate corporation
- prkvate corporation
- provate corporation
- pr9vate corporation
- pr8vate corporation
- pricate corporation
- pribate corporation
- prigate corporation
Etymology of PRIVATE CORPORATION
The word "private" originates from the Latin word "privatus", which means "not part of the public" or "belonging to oneself". It eventually entered Middle English as "private" around the 14th century.
The term "corporation" has a different etymology, originating from the Latin word "corpus", meaning "body" or "group of persons". It entered Old French as "corporacion" and Middle English as "corporacioun" around the 13th century.
The concept of a "private corporation" emerged from the combination of these two words. It refers to a legally recognized entity created by individuals or groups of individuals for the purpose of conducting business activities privately.
Similar spelling words for PRIVATE CORPORATION
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