What are the characteristics of corporations

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Answer 1

Answer #1

The main characteristics of corporation are:

1. Corporation owners have limited liability i.e., the owners even in case of loss are liable only to their portion of any unpaid shares.

2. Corporation has typically unlimited life span unless board resolves to dissolve business.

3. In a corporation ownership is different from management. Management is taken care by the board of directors and ownership is held by shareholders.

4. Corporation has its own identity i.e., it can enter into contracts in its name, can sue and be sued.

Answer 2

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