Corporation

From Open Risk Manual

Definition

Corporation. A formal organization treated as an entity - an artificial person or Legal Entity distinct from its owners - created by or under the authority of the laws of a state or nation

A corporation has three distinguishing characteristics:

  • separation of ownership from management and general liability, i.e., its liability to creditors is limited to its resources, unlike some partnerships and sole proprietorships,
  • the ability to negotiate contracts and own property, and
  • transferable ownership, irrespective of changes in membership or the lifetimes of its stockholders.

Synonyms

  • Body Corporate

See Also

Disclaimer

This entry annotates a FIBO Ontology Class. FIBO is a trademark and the FIBO Ontology is copyright of the EDM Council, released under the MIT Open Source License. There is no guarantee that the content of this page will remain aligned with, or correctly interprets, the concepts covered by the FIBO ontology.

Contributors to this article

» Wiki admin