There are many types of corporations, but each type adheres to the corporation definition.
Each type of corporation may have differing laws which govern that corporation,
as well as different types of liability. Corporate structure plays a large part
in the corporation definition, which includes the name of the corporation as a
separate legal business which has a separate liability than that of those which
are employed by the corporation.
Corporations have liability for issues which
involve the actions of the corporation as a whole. The corporate structure
includes employees, each of which answers to a boss except perhaps for the
president of that company. However, the president of the company may have to
answer to stock holders. The liability of the corporate entity rests
with the company as a whole, but there are issues for
which individual employees can be liable.
In most cases, a corporation has limited
liability and can only be held accountable in certain circumstances or up to a
certain amount. For example, if corporations should go bankrupt, the employees
of that company and even the owner would not be liable to all creditors in most
cases.
As an entity, the corporate structure
includes rights and responsibilities which protect the company, the employees
and those that conduct business with the corporation. Corporations are created
and they can also be dissolved through a process which ends the incorporation
of the individuals or entities which created the company.
