Definition of a Corporation

Remember this from Business Law 101? A corporation is the most common form of business organization, one which is chartered by a state and given many legal rights as an entity separate from its owners.

This form of business is characterized by the limited liability of its owners, the issuance of shares of easily transferable stock, and existence as a going concern. The process of becoming a corporation, called incorporation, gives the company separate legal standing from its owners and protects those owners from being personally liable in the event that the company is sued.

Incorporation also provides companies with a more flexible way to manage their ownership structure. In addition, there are different tax implications for corporations, although these can be both advantageous and disadvantageous. In these respects, corporations differ from sole proprietorships and limited partnerships.

Presently, the United States has abdicated its ability to monitor corporations; as a result, they are out of control. Examples include Big Oil corporations like Exxon-Mobil (remember Enron?) as well as retailers like Wal-Mart and Target.

At the moment in this corporation-friendly administration, the public is picking up the tab for health care, tax breaks and refunds, and other subsidies for American corporations … regardless of offshoring, pollution, and other detrimental practices.

I can’t help but stop and wonder: “Is what’s good for American corporations really good for America?”