Ginee
14-6-2022
A corporation in business is a legal entity that consists of stockholders, shareholders and management. Do you want to know corporation business examples? Let’s read this article to get more information about it.
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What Is Corporation Business?
Are you looking for examples of corporation business in the Philippines? Actually you can find many corporation businesses around you but maybe you just don’t realize that it is a corporation business. There are more than 10 examples of corporations you can find in the Philippines.
Before we discuss more business corporation examples, you need to understand more about corporation business. So a corporation in business or also known as corporate business is a legal entity that consists of stockholders, shareholders and management. The purpose of corporation is to gain profit.
When you are creating a corporation, your cooperation will act as an individual to make contracts, own assets, sue and be sued, collect loans, pay taxes and others. In other words, corporations will have the same rights as a person. Corporation also refers to a legal entity so that it can enjoy the same rights as well as responsibilities like others.
The most characteristic of a corporation is limited liability which means business owners are not allowed to take part in the business liabilities but allowed to take part in the business profit shares. There are many corporate group examples such as Apple, Microsoft, Google, Toyota, Nestle and many more.
When you are setting up a corporation, you will go through the legal process that is also known as incorporation. Incorporation means the process of preparing a legal documents draft that contains the business purpose, business location as well as its name, number of shares and its types. The process of incorporation will give the corporation entity that helps to protect the shareholders to hold the business risk personally.
Read also: 3 Business Plan Examples With Benefits Of Writing It
How Does Corporation Business Differs from Others?
After knowing the corporation examples and explanation, you might be curious on the difference between corporation business and others like partnership business examples. Here are the differences for you.
Limited Liability
The first difference that you can see is the limited liability. Corporation has a limited liability to the corporations’ debt, charges and also lawsuits. This means the business owners and shareholder personal assets are protected from any risk or claims of third parties against the corporation.
Owned by Shareholders
Unlike the sole proprietorship that is owned by a person. Corporation is owned by shareholders. How many shareholders in a corporation will depend on how many corporation stocks that people have. There can be more than 2 shareholders. Shareholders are allowed to vote to control the corporation. If you want to invest in a corporation, you can find and search how to invest in the stock market on the internet.
Taxation
The taxes you get will depend on what business types you are setting up. So when you set up a small business, you will get a different tax rate compared to the big business. The government will tax the profits that corporations get in corporate level tax rates.
Professional Management
Corporation has divided the task professionally. Even when you are shareholders that are allowed to vote on a decision to appoint the board of directors, you are not allowed to manage the company. Unlike the other business where the owner is the one who decides and manages the company.
Separate Legal Existence
Corporation has a separate legal existence which is different from sole proprietorship. When sole proprietorship business has debt, the business owner’s personal asset will be used to pay it. But it will not happen in corporations. Besides that, corporations also can sue and be sued in the corporation name.
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Access to Capital
It is easy to access a corporation’s capital by just issuing stock. This is really attractive for some investors to buy corporations stocks because the personal asset will not be touched if there is any risk. Besides that, corporation stocks are really easy to transfer.
Transferability
One of the corporation business advantages is ownership is transferable. Shareholders can transfer their ownership by just selling their stock to other people. You don’t need to worry because this ownership transfer will not have any effect on the corporation’s daily operation.
Read also: 8 Profitable Ways to Start Online Retail Business Today
5 Corporation Business Examples
There are many corporation business examples in the Philippines you can see around you. Are you curious? Here are several examples of corporation business for you.
Amazon
The first example is Amazon. Who doesn’t know Amazon? Amazon is one of the big marketplace that was founded in 1994 and now has become the e-commerce leader. Amazon provides many types of product categories through their website that can be ordered by the buyer online and the order will be delivered to the buyers’ address.
J.P. Morgan Chase
As one of the oldest financial institutions in the USA, J.P. Morgan Chase & Co has become the biggest financial institution with an annual revenue of $ 105 billion. For your information, J.P. Morgan Chase & Co started its business in 1799.
Microsoft
Microsoft is a huge business because all people around the world are using it. Bill Gates started the Microsoft business in 1975 by making Windows software. Nowadays their product has been used in daily activities. The products such as Ms. Office that contain Ms.Word, Ms.Excel, Powerpoint and many more.
Google is also a huge tech company that many people use in their daily life. Google or also known as a search engine. Google was founded in 1998 by Sergey Brin and Larry Page. The company has several products such as Gmail, YouTube, search engine, Google Maps, software and many more.
Apple
Are you using an iPhone? If yes, you must know what Apple is. For your information, Apple was founded in 1976 by Steve Jobs. The Apple company products are really booming and used by many people around the world. The products such as Ipad, iPhone, Mac and others smart devices. Apple reached the highest revenue in 2018 with the revenue of $ 265 billion.
Conclusion
Corporation also refers to a legal entity so that it can enjoy the same rights as well as responsibilities like others. When you are creating a corporation, your cooperation will act as an individual to make contracts, own assets, sue and be sued, collect loans, pay taxes and others.
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