Corporate/Corporation

The corporation is a legal concept found in most legal systems around the world (Stout et al. 2016). Its three main features are first, its independent existence, which allows it to operate within the legal system, entering into contracts and holding property, without engaging liabilities for the human people involved in those activities. Second, the corporation has perpetual existence which allows it to continue to exist regardless of the human people who may come and go in terms of its operations and participation. Third, the corporation operates through some type of formal management often known as directors and has members. As a concept, it has been part of western legal systems for about a thousand years.

Corporations are the preferred organizational form for businesses. They provide a number of advantages to those operating the business. Unlike partnerships or sole proprietorships, corporations allow limited liability for investors and...