A business corporation is a legal entity permitted by law in every state to exist for the purpose of engaging in lawful activities of a business nature. It is an artificial person created by law, with many of the same rights and responsibilities possessed by humans. Corporations are widely prevalent in the United States; today, virtually every large enterprise is a corporation.

Rights and Privileges of a Corporation

Within legal guidelines, corporations may issue stock, declare dividends, and provide owners with limited liability.

Stocks A corporation can issue and attempt to sell stock. Every share of stock owned represents a share of the corporation's ownership.

From the standpoint of stock sale, there are two kinds of corporations: public and private. With a public corporation, anyone can buy shares of stock, which may very well be traded on a stock exchange. With a private corporation, however, sale of stock...