QUERY FROM HANG PHAM
Hey! Nice day! Also, just a question. It does not relate to international payment. But if you has any knowledge in it, can u tell me: What is the difference between Corporation and Incorporation? Are they joint stock companies or not? Sorry if I bother u. Thanks.
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Thanks. I went to google last night, but it said so little about differences between them. Some webs said that they are the same, but unchangeable. Also, one of my friend made clear to me that: Corporation means shareholding company, but incorporation is a large one, merging from two or more corporation. Is it true?
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ANSWER FROM MR. OLD MAN
Hi,
The difference is simply as follows: A corporation is a legal entity whereas incorporation is the process of forming a corporation under the law of a specific state.
The defining feature of a corporation is its legal independence from the people who create it. If a corporation fails, shareholders only stand to lose their investment, and employees will lose their jobs, but neither will be liable for debts that remain owing to the corporation’s creditors. This rule is called limited liability and this is why corporations end with “Ltd” (limited) or some variant like “Inc.” (incorporated) and “plc” (public limited company).
I guess perhaps the abbreviated “Inc” standing right after the name of some companies in US or Canada has made you think incorporation is a corporation or a company. No, incorporation is not a corporation or a company but is the process of establishing a corporation or a company.
Best regards,
Mr. Old Man (Nguyen Huu Duc) …
