Friday, January 7, 2011


A company a type of business organization. Under US law this may include entities such as corporations, partnerships, joint-stock companies, trusts, etc. Under UK and commonwealth laws a company is a corporation, usually registered under a Companies Act. A company is considered a legal person, and will generally have an unlimited life. The common features of a company include: is a legal person, indefinite existence, ownership is in the form of shares, has a constitution, pays tax, can sue or be sued, can own assets and owe liabilities, and usually has limited liability. The most common purpose of creating a company is to undertake a business, and as a vehicle for raising capital. In this sense this is also the most important aspect of a company for investors: the shares in these companies generally ascribe rights to voting, share in dividends and distributions, and share in the net assets (equity) of the company.

Synonyms: Corporation, Corporate entity, Public company

If you have any further questions or would like to add to this fund management term, then please submit your thoughts below.

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