Alphabet

Definition

A corporation is a legal entity that is separate and distinct from its owners, providing limited liability protection to its shareholders. Corporations can enter into contracts, own assets, sue and be sued.

Related terms

Limited Liability:

This ensures that an investor's responsibility for the debts of a company is restricted to the amount they invested in the company.

Shareholder: An individual or institution that owns one or more shares of stock in a public or private corporation, making them partial owners.

Legal Entity: A legal construct with rights, privileges, and liabilities distinct from those of its members or employees