Corporation

Definition

A legal business entity separate from its owners (shareholders). Offers limited liability but faces double taxation (corporate income tax + dividend tax).

Related Terms

Common Stock

Shares representing ownership in a corporation. Stockholders can vote on company matters and may receive dividends.

Equity

The owners' claim on a company's assets after liabilities are subtracted. For corporations, equity = common stock + retained earnings.

Learn More About Accounting

Explore our free lessons and practice labs to master accounting concepts.

Browse Lessons View All Terms