A corporation is an independent legal formation owned by a group of shareholders. Due to its distinct legal status, a corporation is awarded several rights and responsibilities, including the ability to borrow and lend funds, hire and fire employees, pay taxes, own assets and enter into contracts.Continue Reading
As a distinct legal entity, the corporation itself — and not the shareholders who collectively own the corporation — is liable for all debts and claims made against the business. This limited liability structure allows shareholders to claim portions of the corporation's profits, while eliminating personal liability for the entity's debts.
Corporations are established through the process of incorporation, which requires strict adherence on the part of the shareholders to the laws of the state where the corporation files. Due to the complexity, substantial tax requirements and administrative obligations of corporations, incorporation is sought typically by large and established businesses. Corporations are required to pay federal and state income taxes.
Following the incorporation process, shareholders elect a board of directors who are collectively responsible for managing the entity. Corporations can be held privately or can operate by selling ownership shares on the stock market. Some corporations offer stock shares, and therefore ownership status, to employees as a benefit and incentive.Learn more about Corporations
Google is a publicly traded company owned by a group of shareholders. Founders of Google, Larry Page and Sergey Brin, own most of the shares of the company.Full Answer >
The characteristics of a multinational corporation include its engagement in exporting, joint ventures, global strategic partnerships and the use of license agreements. It combines cheap labor and high-skill staffing strategies to create and maintain foreign affiliates with the goal of globalizing its business endeavors.Full Answer >
A corporate resolution form is the official document of any decision a corporation's board or shareholders make, Rocket Lawyer explains. An organization generally uses the form when it has voted in a new board member or when it sells shares of the corporation.Full Answer >
A corporation maximizes the wealth of its shareholders by investing in income-generating assets, growing its credit to gain access to more capital and by saving a portion of its earnings. To maximize shareholder wealth, a company focuses on increasing earnings per share and dividend payouts. A business should invest in conservative investments based on its duty to protect shareholders' capital and maximize shareholder value.Full Answer >