What is the meaning of term company?

Company

A company is a legal entity that is created by one or more individuals to carry on a business. A company is owned by its shareholders, who elect a board of directors to oversee the company's operations. The board of directors appoints officers to manage the company's day-to-day operations.

Types of companies

There are many different types of companies, including:

* Public companies: Public companies are companies whose shares are traded on a stock exchange.

* Private companies: Private companies are companies whose shares are not traded on a stock exchange.

* Limited liability companies (LLCs): LLCs are a type of company that provides limited liability to its owners.

* Partnerships: Partnerships are a type of company that is owned by two or more individuals.

Benefits of incorporating a company

There are many benefits to incorporating a company, including:

* Limited liability: Shareholders of a company are only liable for the debts of the company up to the amount of their investment.

* Tax advantages: Companies can take advantage of a number of tax advantages, such as the ability to deduct business expenses from their income.

* Access to capital: Companies can raise capital by selling shares of stock.

* Perpetual existence: A company can continue to exist indefinitely, even if its owners die or leave the company.