What are the features of a corporation? The chief distinguishing factor of a corporation is its. An investor who purchases stock in a corporation becomes a in that corporation.

1. What are the features of a corporation?

A corporation is a lawful entity that is independent from the people who possess it. As such, after the enlistment of a corporation, it is a different develop according to the law. A partnership is a legitimate element that is discrete and particular from its proprietors. Corporations appreciate the greater part of the rights and duties that an individual has: enter contracts, advance and acquire cash, sue and be sued, enlist workers, claim resources and make good on government expenses.

2. The chief distinguishing factor of a corporation is its "limited liability".

The head recognizing element of a corporation is its limited liability. The proprietors have an immediate case on the enterprise's benefits in direct relationship with their responsibility for. In any case, their liabilities are restricted to their interest in the enterprise. Along these lines, if the enterprise goes bankrupt, the proprietors are not in charge of its obligations and different commitments. An organization has the chance to exchange its stocks in the money related markets as regular stock once it has finished an initial public offering (IPO).

3. An investor who purchases stock in a corporation becomes a "shareholder" in that corporation.

An investor who buys stock in an enterprise turns into an shareholder in it, yet does not endure any liabilities or have any assets in danger past his or her unique speculation. A shareholder, normally alluded to as an investor, is any individual, organization, or foundation that possesses no less than one offer of an organization's stock. Since shareholders are an organization's proprietors, they receive the rewards of the organization's triumphs as expanded stock valuation. In the event that the organization does inadequately and the cost of its stock decays, nonetheless, investors can lose cash.

limited liability, shareholder