List and describe the various ways to classify corporations

Question

What will be an ideal response?

Answer 1

Corporations may be classified as follows: a) closely held; b) publicly held; c) domestic, foreign, or alien; d) multinational; e) subchapter S; f) professional; g) benefit corporation; or h) nonprofit. A closely held corporation is held by a small group of people whose stock is not traded on national securities exchanges. A publicly held corporation is traded on a national exchange and is held by numerous shareholders. A corporation is held to be domestic in the state in which it incorporates. If a corporation is formed in one state but does business in another, it is referred to in the other state as a foreign corporation. A corporation formed in one country but doing business in the United States is referred to in the United States as an alien corporation. A multinational corporation maintains worldwide distribution and manufacturing, trades on the exchanges of many nation-states, and has officers and managers who are citizens of many states. A subchapter S corporation organizes and operates as a domestic business corporation but for tax purposes is treated like a partnership. A professional corporation allows physicians, lawyers, dentists, accountants, and other professionals to incorporate to take advantage of health and pension plan tax deductions. A benefit corporation is a for-profit corporation that seeks to have a material positive impact on society and the environment. The purpose of this corporation is to benefit the public as a whole rather than increase long-term shareholder value. A nonprofit corporation is not formed for the purposes of making a profit (for example, charitable, religious, educational, and health care organizations).