What is a corporation?

A corporation is defined as a single entity recognized in law, which distinguishes it legally from individuals or groups. This structure allows a corporation to enter contracts, sue or be sued, and own property in its name, separate from the personal assets of its shareholders. The legal recognition of a corporation provides certain advantages, such as limited liability for its owners, meaning that their personal assets are protected from the corporation's debts and liabilities. This legal framework also facilitates the raising of capital, as corporations can issue shares to investors, enabling them to gather resources for expansion and innovation. The concept of a corporation has been pivotal during the Industrial Revolution, where large-scale manufacturing and business operations required the ability to mobilize significant capital and manage risks effectively.