Definition - What does Corporation mean?

A corporation is an entity that is created by a group of people primarily for the purpose of conducting business. Corporations can issue shares of stock. They can sue or be sued. Their liability is limited to their assets. Corporations must be set up in accordance with state laws to be legitimate.

Justipedia explains Corporation

A corporation is essentially just a company that has taken the legal steps to protect shareholders' liability and to enable the lawful ability to do things such as issue stock. If the corporation was not separated from the shareholders in a a legal sense, then individuals running the company would not have their liability limited in the case of a lawsuit. The acronyms "Inc." and "Corp." after a company name means that the company is incorporated. An example of this is Apple, Inc.

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