EBK FUNDAMENTALS OF CORPORATE FINANCE
EBK FUNDAMENTALS OF CORPORATE FINANCE
3rd Edition
ISBN: 9780133762808
Author: Harford
Publisher: PEARSON CUSTOM PUB.(CONSIGNMENT)
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Chapter 1, Problem 5CC
Summary Introduction

Organization:

An organization is a type of entity where in a group of people come together to achieve a common goal. A business organization exists basically in four types of forms namely sole proprietorships, partnerships, limited liability companies, and corporations.

Corporation

A corporation is a separate legal entity which is separate from its owners. It is an artificial body and continues to exist even after the death of its owners where in such case the ownership is transferred. The owners are separate from the legal body and hence they are not liable for any obligation of the corporation individually. Similarly, the corporation is also not liable for any of the personal obligations of its owners.

To Identify:

The manner in which the shareholders control a corporation.

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