Chapter 28: Forming and Financing a Corporation

Corporations do 90 percent of all business in the United States. A corporation is a body formed and authorized by law to act as a single person, distinct from its members or owners. A corporation cannot come into existence by itself—people must take the necessary steps to bring it into legal existence. Shares of stock represent a shareholder’s interest in a corporation. When the shareholders purchase stock, they purchase part of the corporation. As you study this chapter, you will begin to understand the nature of a corporation and be able to compare it to the sole proprietorship or partnership associations.

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