Definitions (3)
Related Terms
1. Firm that meets certain legal requirements to be recognized as having a legal existence, as an entity separate and distinct from its owners. Corporations are owned by their stockholders (shareholders) who share in profits and losses generated through the firm's operations, and have three distinct characteristics (1) Legal existence: a firm can (like a person) buy, sell, own, enter into a contract, and sue other persons and firms, and be sued by them. It can do good and be rewarded, and can commit offence and be punished. (2) Limited liability: a firm and its owners are limited in their liability to the creditors and other obligors only up to the resources of the firm, unless the owners give personal-guaranties.
(3) Continuity of existence: a firm can live beyond the life spans and capacity of its owners, because its ownership can be transferred through a sale or gift of shares.
2. Municipal authority of a town or city.
3. A very large, usually diversified, firm.

For more information, see The Difference between an S Corporation and an LLC.

Use 'corporation' in a Sentence

At first Bill liked working for the large company but, after years at the corporation he felt he could better use his talents at a smaller company that didn't have so much red tape.
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The share holders of the corporation must include their yearly dividends as income when they file their taxes at the end of the year.
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I work for a mindless corporation who steals my time and gives me barely enough money to survive because they want my dependent on them and to never escape.
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