VAE 511: Livestock Entrepreneurship (1+0)

CORPORATION

• A corporation is a business that is chartered or registered by the state and that operates separately from the owner or owners. The advantages and disadvantages of this business form are as follows:

Corporation
Advantages	Disadvantages
easier to raise money/capital (issuing shares of stocks) limited liability of owners, only owing for what is invested better status for employees (pensions/retirement, dividends) easier to change ownership	expensive to set up and organize profits taxed twice extensive record keeping and paperwork

• Limited Liability Corporations are the most recent form of business, combining the best of both worlds (partnerships and corporations).
• Advantages
  • Limited liability of corporation members
  • Not liable for company’s debts
  • Tax advantages of a partnership
  • Shareholders only taxed once
  • Popular among professionals (doctors, lawyers, etc.)
  • Owners risk only their investment
  • Personal assets not at risk
• Corporations are legal entities comprised of persons who have obtained a charter legally recognizing the corporation as a separate entity that has its own rights, privileges, and liabilities that are separate from the individuals that form the corporation. The Corporation can own assets, borrow money, and perform business functions without directly involving the owners.
• Most complex form of business corporation
• Comprised of three groups of people: shareholders, directors, officers
• Subject to more regulations than sole proprietorships and partnerships
• Earnings subject to double taxation (the corporation is taxed and shareholder dividends are taxed)
• Limited liability
• Not a total protection from lawsuits
• The largest businesses in India, such as Venkateswara Hatcheries Ltd , Suguna Chicken,TCS and Infosys are examples of Corporations. They encompass such a wide array of businesses and involve so many investors and stockholders that their liability and security are ensured.