The Concept of the Corporation

A corporation is a legal entity that is separate from its owners, meaning it can own property, enter contracts, and be sued independently. It is formed to conduct business and can raise capital by selling shares to investors, who then become shareholders. Shareholders' liability is typically limited to their investment, protecting personal assets from corporate debts. Corporations can be large, like multinational companies, or small, like local businesses. They provide a structure for organized management and can exist indefinitely, regardless of changes in ownership. This separation fosters investment, innovation, and economic growth.