MGAB01H3 Chapter : The Corporate Form of Organization (s)

• School: UTSC
• Department: Financial Accounting
• Course: MGAB01H3
• Professor: Liang Chen

Document Summary

Corporation is a legal entity that is separate and distinct from its owners. A corporation has the same duties and responsibilities as a person. It must respect laws and it must pay income tax. Two ways that corporations are classified are based on purpose and by ownership. A corporation may be organized for the purpose of making a profit, or it may be not-for-profit. Classification by ownership distinguishes between publicly-held corporations and privately-held corporations. A publicly held corporation may have thousands of shareholders. In contrast, a privately held corporation, often called a closely held corporation, usually has only a few shareholders. It does not offer its shares for sale to the general public. A crown corporation is similar to a privately held company except that it is owned by the government. Separate legal existence: the corporation acts under its own name rather than in the name of its shareholders.