Market exit: Divestment or redeployment?

Multi-business firms have flexibility advantages over single-business rivals because they have the option to redeploy resources across businesses. This flexibility, it has been assumed without empirical evidence, is purported ...

The uneven benefits of CSR efforts

Whether they are in the technology or oil sector, selling shoes or healthcare products, for many companies, green is the new black. While maximizing profit might have been the sole priority for most businesses a decade ago, ...

Video shows students still get paddled in US schools

The image of a teacher paddling or spanking a student at school may seem to belong in a history book—as archaic a practice as the dunce cap. However, for thousands of students across America each year, the use of corporal ...

The psychological cost of corruption in developing countries

Corruption is a crime which slows economic growth, undermines development, and causes inequality. With a cost to the global economy estimated at around US$2.6 trillion (£1.8 trillion) a year, it is often linked to politics ...

Corporations agree to transparency on climate lobbying

Insurer American International Group Inc., railroad company CSX Inc. and electric companies Duke Energy Corp., FirstEnergy Corp. and Entergy Corp. have pledged to report publicly about their influence on climate policy and ...

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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