Corporation

Definition

A corporation is a legal entity that is separate and distinct from its owners, recognized by law as having its own rights, privileges, and liabilities. It can own property, enter into contracts, sue and be sued, but limits the personal liability of its shareholders for the corporation's debts and obligations.

Related terms

Shareholder: An individual or institution that owns one or more shares of stock in a corporation, giving them partial ownership of the company.

Limited Liability:

A legal principle that restricts the amount of money an investor can lose in a business venture to the amount they invested in the company.

Legal Entity: A company or organization that has legal rights and obligations independent of its members, such as the ability to enter into contracts, own assets, incur liabilities, and sue or be sued