Mode of Creation In English a corporation - amazonia.fiocruz.br

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A corporation is an organization—usually a group of people or a company —authorized by the state to act as a single entity a legal entity recognized by private and public law 'born out of statute"; a legal person in legal context and recognized as such in law for certain purposes. Most jurisdictions now allow the creation of new corporations through registration. Corporations come in many different types but are usually divided by the law of the jurisdiction where they are chartered based on two aspects: by whether they can issue stock , or by whether they are formed to make a profit. One of the most attractive early advantages business corporations offered to their investors, compared to earlier business entities like sole proprietorships and general partnerships, was limited liability. Limited liability means that a passive shareholder in a corporation will not be personally liable either for contractually agreed obligations of the corporation, or for torts involuntary harms committed by the corporation against a third party. Limited liability in contract is uncontroversial because the parties to the contract could have agreed to it and could agree to waive it by contract. However, limited liability in tort remains controversial because third parties do not agree to waive the right to pursue shareholders. There is significant concern that limited liability in tort may lead to excessive corporate risk taking and more harm by corporations to third parties. Where local law distinguishes corporations by their ability to issue stock, corporations allowed to do so are referred to as stock corporations ; one type of investment in the corporation is through stock, and owners of stock are referred to as stockholders or shareholders. Corporations not allowed to issue stock are referred to as non-stock corporations ; i.

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The Difference between the United Kingdom, Great Britain and England Explained

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