When businesses behave badly

On a fateful April night ten years ago, the Deepwater Horizon oil rig exploded—taking the lives of 11 crew members and triggering the largest marine oil spill in history. Nearly five million barrels of oil spilled into ...

Boys' club barriers create issues for Australian boards

Pale, male and stale—it's certainly stereotypical, but it's a saying that still holds water when it comes to Australian boards, according to new research from the University of South Australia.

Diverse supply chains are a win for society—and for business

As movements calling for racial justice have grown throughout the country in recent weeks, many businesses have increased visibility of their diversity initiatives. But few companies ever report on the results of these initiatives, ...

Pull up to the bumper

Is six seconds long enough for an advertisement to woo a potential customer? The corporate executives who place short, "bumper ads" on the video-based social media service, Youtube, think so. Now, research published in the ...

Genetic barcodes can ensure authentic DNA fingerprints

Engineers at Duke University and the New York University's Tandon School of Engineering have demonstrated a method for ensuring that an increasingly popular method of genetic identification called "DNA fingerprinting" remains ...

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Corporation

A corporation is created under the laws of a state as a separate legal entity that has privileges and liabilities that are distinct from those of its members. There are many different forms of corporations, most of which are used to conduct business. Early corporations were established by charter (i.e. by an ad hoc act passed by a parliament or legislature). Most jurisdictions now allow the creation of new corporations through registration.

An important (but not universal) contemporary feature of a corporation is limited liability. If a corporation fails, shareholders may lose their investments, and employees may lose their jobs, but neither will be liable for debts to the corporation's creditors.

Despite not being natural persons, corporations are recognized by the law to have rights and responsibilities like natural persons ("people"). Corporations can exercise human rights against real individuals and the state, and they can themselves be responsible for human rights violations. Corporations are conceptually immortal but they can "die" when they are "dissolved" either by statutory operation, order of court, or voluntary action on the part of shareholders. Insolvency may result in a form of corporate 'death', when creditors force the liquidation and dissolution of the corporation under court order, but it most often results in a restructuring of corporate holdings. Corporations can even be convicted of criminal offenses, such as fraud and manslaughter. However corporations are not living entities in the way that humans are.

Although corporate law varies in different jurisdictions, there are four characteristics of the business corporation:

This text uses material from Wikipedia, licensed under CC BY-SA