Corporation Definition and Legal Meaning

On this page, you'll find the legal definition and meaning of Corporation, written in plain English, along with examples of how it is used.

What is Corporation?

It is a fictitious entity different from the owners or its shareholders , having its own rights and priviledges and which is been running under the authgority of certain business laws. It is usually owned or created for purpose of creating business, by some people with common interest and law have same implication as on any other person.A corporation has rights to claim debts, do purchase and selling and it generates profits for the members or its shareholders. It also protects the shareholders by limiting the liability of the corporation to its assets only.

History and Meaning of Corporation

A corporation is an organization created under the authority of law, having its own privileges, rights, and liabilities. It is different from the people who own or run it. The corporation is a legal entity that has the power to enter into contracts, sue or be sued, and conduct business activities. It was first introduced in the 16th century to encourage trade and commerce.

By the 18th century, corporations became prevalent in the United States, with many states enacting their corporation laws. During the Industrial Revolution, they played a significant role in the development of the American economy. Since then, corporations have become a staple of modern business.

Examples of Corporation

  1. Apple Inc. is a corporation that designs and manufactures consumer electronics, computer software, and personal computers.

  2. PepsiCo Inc. is a corporation that operates in the food, snack, and beverage industry, with brands such as Frito-Lay, Pepsi, and Quaker Oats.

  3. Ford Motor Company is a corporation that designs and produces automobiles, trucks, and other vehicles.

  4. Walmart Inc. is a corporation that operates a chain of retail stores worldwide, selling a variety of consumer goods.

  5. McDonald's Corporation is a corporation that operates a chain of fast-food restaurants worldwide.

Legal Terms Similar to Corporation

  1. Limited Liability Company (LLC) - it is a hybrid business entity that combines the limited liability of a corporation with the tax benefits of a partnership.

  2. Partnership - it is a business association of two or more people to carry on as co-owners of a profit-oriented enterprise.

  3. Sole Proprietorship - it is a business owned and run by a single person who bears the risks and reaps the rewards of the enterprise.

  4. S Corporation - it is a form of corporation that avoids double taxation by passing its income and losses to its shareholders.

  5. Cooperative - it is a type of corporation that is owned and operated by the people who use its services or buy its products, such as a credit union or farmer's cooperative.