COMPANY

A legal entity, allowed by legislation , which permits a group of people, as shareholders, to create an organization, which can then focus on persuing set objectives, and empowered with legal rights which are usually only reserved for individuals, such as to sue and be sued, own property, hire employees or loan and borrow money. Also known as a " corporation ." The primary advantage of a company structure is that it provides the shareholders with a right to participate in the profits (by dividends ) without any personal liability (the company absorbs the entire liability of the business).