CORPORATION

A legal entity, allowed by legislation , which permits a group of people, as shareholders (for-profit companies) or members (non-profit companies), to create an organization, which can then focus on pursuing 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 " company ." The primary advantage of for profit corporations is that it provides its shareholders with a right to participate in the profits (by dividends ) without any personal liability because the company absorbs the entire liability of the organization.