What is a corporation?

Each of us at least once in my life heard such a word as a corporation. However, what is it? What organization can be called a corporation? This is what we will talk about in our article.

The concept of corporation

What is a corporation? In general terms, it is an association of legal entities linked by one purpose, which is to protect interests and extract financial benefits. In history, the first corporation was the unification of merchants and artisans. One of the largest corporations is considered to be the East India Company.

Today the corporation is called one of the mainforms of organization of entrepreneurial activity, which provides for shared ownership and use of assets, as well as funds and capitals. The corporation can employ employees of various professions, qualifications, having a different level of education and experience.

A corporation is a union of individual entrepreneursor entire companies. The activities of the corporation, as a rule, have global coverage. For example, Microsoft Corporation distributes its products all over the world. The same goes for the famous Apple corporation. Learn about who is its founder, you can in the article Who is the founder of Apple.

In the economy, the corporation is considered to be an organization that conducts activities for the production (production) of products, carries out transportation, storage and sale of goods in their own stores.