Corporations

A corporation is a kind of business organization made up of a number of people who, according to law can act as a single person. Corporations account for approximately one-fifth of the firms in the United States and about 90% of all sales. A corporation is a form of business organization recognized by law as a separate legal entity having all the rights of an individual. This status gives the corporation the right to buy and sell property, enter into legal contracts, and to sue and be sued.

Some of the advantages of corporations include:

• ease of raising capital
• owners have limited liability
• business’s life is unlimited

Some of the advantages of corporations include:

• charter is expensive
• corporate income is taxed twice
• subject to government regulation.

Objectives:

• Describe the characteristics of a corporation
• Explain some of the advantages and disadvantages of a corporation

Here is a link to a resource that explains how to form a corporation, advantages, and disadvantages.

Homework: Find an article and write a summary - business organization (sole-proprietorship, partnership, corporation) problems (lawsuit, takeover, stock issues, etc.) due Wednesday the 28th.