Corporates
Corporates are companies or organizations that are formed and legally recognized as separate entities from their owners. Corporations are owned by shareholders, who are granted certain rights and privileges, such as the right to vote on company matters and the right to receive dividends. Corporations are typically managed by a board of directors, who are elected by the shareholders. Corporations are subject to taxation and must comply with certain regulations. Corporations are also subject to certain liabilities, such as the potential for lawsuits and other legal actions.
History of Corporates
The concept of the corporation has been around since the Middle Ages, when it was used to refer to a group of people who were granted certain rights and privileges by a monarch or other authority. The modern corporation was first developed in the United Kingdom in the late 18th century. The first modern corporation was the East India Company, which was granted a royal charter in 1600. The East India Company was granted certain rights and privileges, such as the right to trade in certain areas and the right to issue its own currency. The concept of the corporation spread to the United States in the 19th century, and the first modern corporation in the United States was the Delaware Corporation, which was established in 1802.
Comparison Table
| Corporation | Partnership | Sole Proprietorship |
|---|---|---|
| Separate legal entity | No separate legal entity | No separate legal entity |
| Unlimited life | Limited life | Limited life |
| Unlimited liability | Unlimited liability | Unlimited liability |
| Taxed as a separate entity | Taxed as individuals | Taxed as individuals |
Summary
Corporates are companies or organizations that are formed and legally recognized as separate entities from their owners. Corporations are owned by shareholders, who are granted certain rights and privileges, such as the right to vote on company matters and the right to receive dividends. Corporations are typically managed by a board of directors, who are elected by the shareholders. Corporations are subject to taxation and must comply with certain regulations. For more information about Corporates, you can visit websites such as Investopedia, The Balance, and the US Small Business Administration.
See Also
- Shareholders
- Board of Directors
- Taxation
- Regulations
- Liability
- Partnership
- Sole Proprietorship
- Limited Liability Company (LLC)
- Publicly Traded Company
- Private Company
