A corporation is a legal entity that is separate and distinct from its owners (shareholders). It is created under the authority granted by law and has many of the same rights and responsibilities as an individual. Corporations can own property, enter into contracts, sue or be sued, and conduct business operations. One of the key features of a corporation is limited liability, which means that shareholders typically are not personally liable for the debts and obligations of the corporation beyond their investment in the company (unless they have personally guaranteed the debts).
Corporations are often formed for various reasons, including attracting investment capital, limiting personal liability, facilitating business expansion, and providing a stable management and ownership succession structure. They are governed by a board of directors elected by the shareholders, who oversee major decisions and appoint officers to manage day-to-day operations.
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