(71) A corporation is a legal entity that exists as
distinct from the individuals who control and invest in it. (72)As a
result, a corporation can continue indefinitely through complete changes of
ownership leadership, and staffing. Current owners can sell their holdings
to other individuals or, if they die, have their assets transferred to heirs.
This is possible because a corporation creates shares of stock that are sold to
investors. One strength of the corporate business structure is that stockholders
have limited liability, as opposed to the unlimited liability of general
partners, so they cannot lose more than their initial investment.
(73)Investors may also easily buy and sell stocks of public corporations
through stock exchange. (74) By offering stock publicly, a corporation
enables anyone with some money to buy the stock and become a part-owner of the
company. (75) As a result, corporations can more easily raise capital for
business expansion than can sole proprietorships and most
partnerships.