ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A corporation is a legal entity created by individuals, stockholders, or shareholders, with the purpose of operating for profit.

Detailed explanation-2: -A business organized as a separate legal entity owned by stockholders is a corporation.

Detailed explanation-3: -A corporation, sometimes called a C corp, is a legal entity that’s separate from its owners. Corporations can make a profit, be taxed, and can be held legally liable. Corporations offer the strongest protection to its owners from personal liability, but the cost to form a corporation is higher than other structures.

Detailed explanation-4: -An overview of the four basic legal forms of organization: Sole Proprietorship; Partnerships; Corporations and Limited Liability Company follows.

Detailed explanation-5: -Owners of a company are shareholders as they purchase their interest in the company by buying shares or stocks. In a partnership, the business is owned and run by partners that own a percentage of the whole business as set out in the Partnership Agreement.