What are the characteristics of corporations? What are the incorporation procedures? Explain the articles of incorporation and bylaws.
Characteristics of corporations
1. They are separate legal entities, distinct from their owners
2. Act under their own legal names, as opposed to the names of their shareholders
3. They may enter into legally binding contracts, thus they can sue orr be sued
4. They my acquire and dispose of property, borrow money
5. They pay taxes
6. Their owners have limited liability, thus can only satisfy their claims using assets owned by the corporation
7. Their shares are transferable, and the corporations themselves have no say in matters pertaining to ownership transfer after original sale of capital stock
8. Their activities are not affected by transfer of ownership
9. They may obtain capital through stock issuance
10. They may ...
This response highlights the characteristics of a corporation, and presents the procedure followed when incorporating a company. Additionally, the response presents a detailed definition of the terms 'articles of incorporation' and 'corporate bylaws.