Answer to Question #233083 in Management for Bob

Question

Identify the principal attributes of a corporation and explain how these distinguish it from a partnership, and a sole trader?

Answer should not be less than 1000 words

Answer 1

The five main characteristics of a corporation are limited liability, shareholder ownership, double taxation, continuing lifespan and, in most cases, professional management.

The main difference between a partnership and a corporation is the separation between the owners and the business. Corporations are separate from their owners, but in partnerships, owners share the business's risks and benefits. In a partnership, two or more individuals who wish to do business together form a company.