Final answer:
A corporation is the legal form of business that is allowed to issue shares of stock. This type of business can raise capital by selling shares publicly, and it provides limited liability to its shareholders, separating personal assets from the company's debts.
Step-by-step explanation:
The legal form of business ownership that issues shares of stock is called a corporation. Unlike a sole proprietorship, which is owned by one individual, or a partnership, which is owned by two or more persons, a corporation is a formal legal entity that is authorized to issue stock. When a business incorporates, it may choose to raise capital by selling shares to the public, making it a public corporation with shareholders who invest in the company and in turn, share in its profits and losses. A corporation offers limited liability to its owners, meaning that the personal assets of the shareholders are protected from the company's debts and liabilities.
A private company, however, can also be a corporation but without publicly issued stock. Such companies are owned and run by individuals or groups on a day-to-day basis and may be small or large in scale. Examples of large private corporations include Cargill, the Mars candy company, and the Bechtel engineering and construction firm.
It is important to note that each business structure has its own implications in terms of taxation, liability, and management, which should be considered when establishing a business.