A corporation is a company that has undertaken to follow legalities to become a business enterprise. A corporation has personality and identity. One of the most dynamic parts of any organization is the culture which it fosters. The corporate culture can vary and the diversity in choice is what makes each corporation unique. The business leadership determines the organizational behavior and its mission.
All corporations are born at the point of formal registration of the company. This is an important step because the legal certification becomes the company’s birth certificate. The legal entity must be named and what follows is that a legal business name is given to complete the rite of enterprise. The name is associated with various rights and responsibilities. Unlike a sole proprietor a corporation is separate from its founders and has is responsible for its own debts. For example, the bank cannot come after the stockholders if a corporation goes bankrupt as it can in the case of a sole proprietor.
Corporations range in size and can be as small as two directors. The corporate culture when small is more likely to follow the agenda of the founders. The vision is repeated to ensure that as the company grows the people who interact with the corporation understand its reason for existence. By law, a corporation has to state its industry and type of business enterprise. These restrictions prohibit a corporation in one industry using the same company in another. Monopolism is reduced because of these restrictions.
The corporation acts and functions in many ways just like a real person. This is where most of the problems enter. The human element creates conflict, offers different perspectives and is continually changing. This is why business skills like leadership development help corporations. New business skills are needed in an ever changing work environment.
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