Corporation

A corporation is a legal entity that has rights and responsibilities distinct from the owners of the corporation, who are known as shareholders. McDonald’s is a corporation. And like all corporations, can live beyond the lifetime of any owner. And in principle, could live forever. Corporations can be sued, but shareholders cannot. For example, a woman received burns when she spilled hot McDonald’s coffee on herself, sued the McDonald’s corporation, and won. That is why coffee cups now have warnings that the content is hot.

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