Asked by Isaiah Drayton on Jun 08, 2024
Verified
Describe the different classifications of corporations.
Classifications of Corporations
The grouping of corporations into categories based on certain characteristics, such as purpose, ownership, or place of incorporation.
Corporations
Legal entities established by individuals, shareholders, or stockholders, with separate rights and liabilities distinct from those of its members.
- Delineate the classifications and the foundational documents of corporations.
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Freddy BarajasJun 14, 2024
Final Answer :
How a corporation is classified depends on its purpose, ownership characteristics, and location.
• A private corporation is, as the term indicates, a corporation that is privately owned.
• A public corporation is formed by the government for a political or governmental purpose, as when a town incorporates. Note that a public corporation is not the same as a publicly held corporation.
• A publicly held corporation is any corporation whose shares are or could be publicly traded in securities markets, such as the New York Stock Exchange.
• Corporations may also be classified as either for-profit corporations or not-for-profit (or nonprofit) corporations. A not-for-profit corporation may be formed by a group-such as a charitable association, a hospital, or a religious organization-to conduct its business without exposing the individual owners to personal liability.
• A private corporation is, as the term indicates, a corporation that is privately owned.
• A public corporation is formed by the government for a political or governmental purpose, as when a town incorporates. Note that a public corporation is not the same as a publicly held corporation.
• A publicly held corporation is any corporation whose shares are or could be publicly traded in securities markets, such as the New York Stock Exchange.
• Corporations may also be classified as either for-profit corporations or not-for-profit (or nonprofit) corporations. A not-for-profit corporation may be formed by a group-such as a charitable association, a hospital, or a religious organization-to conduct its business without exposing the individual owners to personal liability.
Learning Objectives
- Delineate the classifications and the foundational documents of corporations.