What is a corporation? (a) Explain the different types of corporations in this answer. (b) Describe the major characteristics of a large publicly traded corporation.
A corporation is an entity that is created under established state and federal laws which entitle it to the privileges and liability that is directly related to it and its representative members (Wilson, 2007). Corporations are generally set up as institutions that are trying to conduct some form of business for the purpose of monetary or other specific gains. A key feature in a corporation is called limited liability. In other words, if a corporation fails to succeed and this causes its stock holders to lose money or it causes employees to lose their jobs, neither party will be held responsible or liable for any of the remaining debts that the corporation may be held accountable for by their creditors (Nowlin, 2009).