- A legal entity that has separate rights and liabilities than those of its members. Corporations are often used as a way to limit liability so that if a corporation loses money, investors and employees are not responsible for repaying the corporation's debts. Individual stockholders own portions of the corporation (stocks). Not all corporations are founded for business purposes, some corporations are public bodies, clubs and charities.
Related Terms and Acronyms
- Business (busn) — Abbreviation,
- Economic activities of a given type.
- A company, either for-profit or non-profit.
- Commercial, industrial or professional activities undertaken by an entity.
- Commercial Mortgage — Definition, Very Important,
- A mortgage for commercial property.
- Common Stock (CS) — Acronym,
- A security that allocates partial ownership in a corporation, but at a lower standing than preferred stocks.
- Incorporated Business — Definition,
- A company that exists as a corporation.
- Preferred Stock — Definition,
- A type of security that signifies part ownership in a corporation and is given preferential treatment over common stocks.
- Privately Held Company — Definition,
- A company that is not listed on a stock exchange.
- Sole Proprietorship — Definition,
- A business owned by an individual where no legal distinction is made between the business and the owner.
- Stock — Definition,
- A share of the ownership of a company.