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Article: Corporations
- Article from:
- Dictionary of American History
- Author:
CopyrightCOPYRIGHT 2003 The Gale Group Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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CORPORATIONS
CORPORATIONS.
A corporation is an independent entity: it exists separately from its owners, the shareholders. Most corporations are businesses for profit that raise capital for corporate activities by selling shares of stock, which represent ownership and are transferable. There are also charitable, cooperative, municipal, and religious corporations, all of which have distinctive features. A corporation's shareholders elect the board of directors that hires the corporation's officers, who run the day-to-day business. For many purposes, the corporation is treated as if it were a person. The corporation can sue or be sued, enter into legally binding agreements, and own ...
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