Final answer:
A corporation is a business owned by shareholders. They can issue stock, pay dividends, purchase equipment on credit, and sell merchandise for cash.
Step-by-step explanation:
A corporation is a business owned by shareholders who have limited liability for the company's debt yet a share of the company's profits. They may issue common stock for cash, which means they sell shares of their company to investors in exchange for money. They can also pay dividends to shareholders, which are direct payments from the firm to its shareholders. In addition, corporations may purchase equipment on credit and sell merchandise for cash.