The characteristics of a corporation include the limited liability that is available to the owners and members. The organization of the corporation is such that it is regarded as a separate entity from its stakeholders and therefore in case of loss, debt or bankruptcy the stakeholders are not liable to pay out of their own finances (Llewellyn, 1921). This reduces the risk in a corporation for the stakeholders. The shareholders are not responsible for running the business; however they can affect the decisions being made for the company. A board of directors and a management is appointed which is responsible for running the business. Moreover succession for the corporation is possible (Vandenack, 2004), as in case of any shareholder or member, the company still remains incorporated and operational as opposed to the partnership which dissolves in such circumstances.
In terms of legal issues, the corporation is a much complex business to establish and register as it requires multiple documents to be registered. A memorandum of association and article of incorporation are required for the corporation to be registered. Moreover there are specific restrictions on the type of corporations being formed and the amount of stakeholders and board of directors the company can set. The financing for a corporation is relatively easier as the finances can be generated by issuing out shares of the company through a public or a private offering (Nicolai, 2000). Moreover financial institutions are also less reluctant in proving the corporations with loans.