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Corporations

Definition

Corporations are large business entities that are owned by shareholders and operated by a board of directors. They have legal rights and responsibilities separate from their owners, allowing them to raise capital, make investments, and conduct business activities.

Analogy

Think of corporations as giant puzzle pieces. Each piece represents a different aspect of the business (e.g., production, marketing), but when they come together, they form a complete picture of the company's operations.

Related terms

Monopoly: A monopoly occurs when one corporation or individual controls the entire market for a specific product or service.

Trust: A trust is an arrangement where multiple companies in the same industry combine under a single board of trustees to eliminate competition and establish control over prices.

Robber Barons: Robber barons were wealthy industrialists who used unethical practices to accumulate immense wealth and power during the Gilded Age.