What Does It Mean When Someone Says That a Corporation

question 206

Short Answer

What does it mean when someone says that a corporation is an artificial person created by law? In your answer, describe some things that an artificial person and a real person, like you, could both do.

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Definitions:

Rent

A regular payment made by tenants to landlords for the use of property or land; in economics, it also refers to earnings in excess of the minimum amount necessary to keep a factor of production in its current use.

Proprietor's Income

Income earned by the owner of a sole proprietorship from the business's net earnings.

Wages and Profits

The income earned by workers and the revenue earned by owners or shareholders from their investment, respectively.

Interest and Profits

The returns on investment from lending money and the surplus revenues from successful business operations, respectively.