Corporate Finance
3rd Edition
ISBN: 9780133558005
Author: Berk
Publisher: PEARSON
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Question
Chapter 1, Problem 1P
Summary Introduction
To Determine: The important difference between a corporation and an organization.
Introduction:
A corporation is an organization or a business framed by a group of individuals, and it has rights and liabilities isolated from those of the people included. It might be a philanthropic or a non-profit association occupied with activities for the public, private, municipal and city or town that has been sorted out to make a benefit.
Expert Solution & Answer
Explanation of Solution
The important differences between a corporation and an organization are as follows:
- The significant difference among the sorts of corporate hierarchical structures is based on how they are taxed.
- A corporation is a lawful entity isolated from its proprietors.
- The investors of a company usually pay taxes twice.
- This framework, in some cases is alluded to as double
taxation .
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