What is a corporation defined as?

A corporation is defined as an artificial person or legal entity created by law. This definition highlights several key aspects of what a corporation is. First, the idea of being an "artificial person" indicates that a corporation has a separate legal identity from its owners (shareholders), which allows it to own property, enter into contracts, and sue or be sued in its own name.

The creation of a corporation involves formal legal processes mandated by governmental authorities, such as filing articles of incorporation. This legal recognition provides certain rights and responsibilities to the corporation, differentiating it from other forms of business organization such as sole proprietorships or partnerships, which do not have the same level of legal distinction.

Additionally, this definition encompasses the permanence of a corporation, as it can continue to exist independently of the changes in ownership or management. This characteristic is critical for attracting investment and providing stability in business operations.

Other options do not accurately reflect the nature of a corporation. For instance, some describe a lack of legal recognition or informality, which contradicts the established and regulated structure of corporations.