The most common form of business organization, and one which is chartered by a state and given many legal rights as an entity separate from its owners. This form of business is characterized by the limited liability of its owners, the issuance of shares of easily transferable stock, and existence as a going concern. The process of becoming a corporation, call incorporation, gives the company separate legal standing from its owners and protects those owners from being personally liable in the event that the company is sued (a condition known as limited liability). Incorporation also provides companies with a more flexible way to manage their ownership structure. In addition, there are different tax implications for corporations, although these can be both advantageous and disadvantageous. In these respects, corporations differ from sole proprietorships and limited partnerships.

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Use corporation in a sentence

The corporation was very powerful and they used their leverage over the rest of the business, which made everyone mad.

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The rebel did not want to work for the corporation because he felt it represented everything that was wrong with the state and government.

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A business registered within a particular state that issues transferable stock, limits the liability of the stockholders, and continues to do business is a corporation.

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Monetary Control Act acquirer