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John Marshall who is the chief justice in 1819 specify corporation as an artificial cosmos, invisible, intangible, and existing only in contemplation of law in which the entity separate and distinct from its owners (Weygandt, 2005, p. 527). Corporations benefits from being a legal entity, meaning it is a separate entity from its owners which atomic number 18 the sh atomic number 18holders. Shareholders are not personally liable for liabilities or debts of the corporation. Corporations brook full legal capacity to enter contr turnual agreements on their own behalf. Any legal proceedings brought against the corporation exit be in the corporate name separate from its shareholders. The owners and directors of corporations are immune to legal action under the legal dominion of limited li index.
Corporations have a centralized heed in a board of directors; these directors are elected by the shareholders and act as an advocate for the stockholders. The board of directors is responsible for creation of policies regarding the operating theater of the corporation. Each type of corporation, sole, aggregate, statutory, or chattered, has a centralized management system.



Corporations have continuity of existence which in the event of finis of a shareholder will not affect the identity, operation, or existence of the corporation. Only until the provisions of its charter, actions of the State, or other authority will its existence be terminated. A corporation may also acquire property under the corporate name. The fantastic characteristics of a corporation allows for free transferability of shares between shareholders by pledge, gift, sale, or assignment. Transfers do not interfere with the corporations operations. Adequacy of capital is facilitated through raising of capital at a reasonable cost. This allows for the ability to attract investors willing the invest capital in a business venture.If you want to get a full essay, run it on our website: Ordercustompaper.com



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