Final answer:
A corporation is an artificial entity created by the state and existing apart from its owners. A corporation is an artificial entity created by the state, existing separately from its owners, and can be public or private.
Step-by-step explanation:
An artificial entity created by the state and existing apart from its owners is known as a corporation. A corporation is a large business that has a formal, legal structure and is considered a single entity distinct from its owners. It can be public or private, with public corporations having publicly issued stock and private corporations not having publicly issued stock.
A corporation is an artificial entity created by the state, existing separately from its owners, and can be public or private. Unlike other structures, such as sole proprietorships or partnerships, corporations enjoy limited liability, meaning the business entity is held accountable, not the individuals. Examples of large private corporations include Cargill and Mars, which operate without publicly issued stock.
An artificial entity created by the state and existing apart from its owners, known as a corporation, is distinct from other business structures like a sole proprietorship or a partnership. A corporation is a formal, legal arrangement that requires permission from national and state governments to incorporate. Unlike a sole proprietorship, which is owned and run by an individual, or a partnership, where a business is owned and run by a group, a corporation can sell shares to the public to raise revenues, forming a public company, or remain private without publicly issued stock.
Corporations are considered separate legal entities from the individuals who work for them, which historically marked a significant change in how businesses were seen, with the modern notion of a corporation dating back to the Dutch East India Trading Company in the 1600s. Some large private corporations like Cargill and Mars do not issue public stock, yet still operate on a scale comparable to public companies. The concept of limited liability allows individuals in a corporation to avoid personally bearing the legal consequences of the corporation's actions.