ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A business corporation is the most complex form of business organization. Its formation and its internal operations are governed by state law. A business corporation is an entity organized for profit under the laws of one state.

Detailed explanation-2: -What is a Complex Corporate Structure? In simple terms this refers to a company that does not have immediate transparency of ownership and/or control. If a company has several layers of corporate officers, shareholders and PSCs it makes it difficult to see who the beneficial owners are.

Detailed explanation-3: -Corporations offer the strongest protection to its owners from personal liability, but the cost to form a corporation is higher than other structures. Corporations also require more extensive record-keeping, operational processes, and reporting.

Detailed explanation-4: -The most common forms of business are the sole proprietorship, partnership, corporation, and S corporation. A Limited Liability Company (LLC) is a business structure allowed by state statute.

Detailed explanation-5: -The C Corporation is the most common form of corporate entity. Also known as a “general for profit corporation”, the C Corporation is owned by shareholders. The shareholders elect a board of directors to create and direct the high-level policies of the business.