Monday, July 28, 2008

What is a corporation under U.S. law?

According to the Black's Law Dictionary, a corporation is referred to as "An entity having authority under law to act as a single person distinct from the shareholders who own it and having rights to issue stock...".

Therefore, a corporation is an entity, usually involved in bussiness activities, different than the individuals who own it, so as to limit the liability of such persons during the course of the activities of the corporation. The most prominent characteristic is the limited liability.

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