Corporation Meaning: Definition, Examples, and Translations
๐ข
corporation
[หkษห.pษหreษช.สษn ]
Definition
business organization
A corporation is a legal entity that is separate and distinct from its owners. It is formed by individuals, shareholders, or a group of individuals who come together to engage in a particular business activity. Corporations have the ability to enter into contracts, sue and be sued, own assets, and incur liabilities.
Synonyms
Which Synonym Should You Choose?
| Word | Description / Examples |
|---|---|
| corporation |
Used to describe a large and often publicly traded business entity with a complex structure.
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| company |
A general term for any business, regardless of its size or structure. Suitable for both formal and informal situations.
|
| firm |
Commonly used to describe a professional business, especially in law, consulting, or finance. Often applied to small or specialized businesses.
|
| enterprise |
Often used to describe a business focused on large-scale or entrepreneurial endeavors. Suitable for dramatic or ambitious contexts.
|
Examples of usage
- A multinational corporation operates in multiple countries.
- The corporation's board of directors is responsible for making major decisions.
- The shareholders of the corporation elect the executives.
- The corporation is required to file annual reports with the Securities and Exchange Commission.
- The corporation was founded in the early 20th century.
Translations
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Interesting Facts
History
- The first chartered corporation known in history was in the early 12th century in England for trade purposes.
- The East India Company, founded in 1600, is often seen as a prominent example of a powerful early corporation that wielded significant influence over trade and politics.
- In the 19th century, many countries enacted law reforms that allowed corporations to be formed more easily, spurring economic growth.
Economics
- Corporations can raise capital by selling shares, making them essential to growing large-scale businesses.
- Limited liability is a key feature of corporations, meaning owners aren't personally responsible for the debts of the business.
- The rise of multinational corporations has changed global economies, influencing employment, culture, and trade across borders.
Pop Culture
- Movies like 'The Corporation' critique how large businesses can negatively impact society and the environment.
- Books such as 'Capital in the Twenty-First Century' provide critical insights into the power of corporations in wealth distribution.
- Corporations often sponsor pop culture events, like music festivals and sports, blending business with entertainment.
Legal
- In many countries, corporations are recognized as 'persons' under the law, allowing them to sue and be sued.
- Legal battles involving trademark rights and corporate responsibility have shaped the laws governing business operations.
- The concept of corporate social responsibility (CSR) has led many companies to focus on ethical decisions alongside profit-making.
Origin of 'corporation'
Main points about word origin
- The word comes from the Latin 'corporatio', meaning 'a body' or 'group of people'.
- The term originally referred to groups of citizens coming together in ancient Rome for various purposes.
- As commerce grew, the meaning evolved to include businesses that were legally recognized as distinct entities.
The word 'corporation' originates from the Latin word 'corporatio', which means 'a body of people'. The concept of a corporation dates back to ancient Rome and has evolved over centuries to its modern form. In the Middle Ages, corporations were often formed by royal charter to carry out specific functions. Today, corporations play a vital role in the global economy, providing a framework for business activities and facilitating investment and growth.