Corporation
Categories: Entrepreneur, Incorporation, Company Valuation, Board of Directors
A form of business organization in which the business acquires a legal status separate from its owners; this limits the liability or risks of the owners by placing their other assets beyond the reach of court action and creditors. Corporations divide ownership into units represented by shares of stock that can be transferred or exchanged. Corporations are also generally characterized by the separation of ownership from management; thus, shareholders often play very little role in the practical management of the corporation.
Bottom line: if you sue a corporation, you can’t go after Richie McRich who owns the corporation, too.