Problem 17

Introduction

A corporation is a legal entity formed by a group of persons to engage in and manage industrial and commercial activities. A corporation can be established in a variety of ways for tax and financial purposes, depending on the state or county corporate legislation. The type of business entity a company chooses, such as a partnership, sole proprietorship, or corporation, is usually influenced by the activity it does. These agreements also reveal the company's equity structure. It's also possible to distinguish between private and public corporations. The two companies have different ownership structures, legislation, and financial statement standards.