ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The default form of corporation is the C corporation, which is taxed as a separate entity. Distributions to shareholders are made in the form of dividends. The C corporation structure is heavily used, because it can be owned by an unlimited number of shareholders.

Detailed explanation-2: -A corporation is a legal entity that is separate and independent from the people who own or run the corporation, namely shareholders. A corporation has the ability to enter into contracts separate from that of the shareholders, but it also has certain responsibilities such as the payment of taxes.

Detailed explanation-3: -A business organized as a separate legal entity owned by stockholders is a corporation.

Detailed explanation-4: -A partnership (or general partnership) is a business owned jointly by two or more people.

Detailed explanation-5: -A limited company is a privately managed business, owned by its shareholders and run by its directors. The company is a separate legal entity with its own legal rights and obligations.