Question

Explain how a corporation is formed and it can be dissolved.

Answer 1

Answer-A corporation is formed when it is incorporated by a group person who is also having the shares and commonly refers as shareholders and who are owned by the corporation, represented by the holding of common stock to achieve a common goal which is set by the group of shareholders to achieve a goal of the corporation. Corporations can be formed by both the private sector as well as with the help of the government for the achievement of the common goal. Generally, corporations are formed for the welfare of the society. A corporation can only dissolve when the property of corporation is distributed among the members of the corporation and all the liabilities of the corporation is discharged.