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o-na [289]
2 years ago
5

What is the difference between a Corporation and a Foundation? ​

English
1 answer:
avanturin [10]2 years ago
5 0

Answer:

A corporation is established for commercial gain in a variety of situations, including securities trading, financing, global trade, real estate ownership, and more. Contrarily, foundations are more frequently used for charitable endeavors, giving or receiving donations, etc. They may also be formed for keeping purposes, such as to preserve corporate assets or any other kind of products.

Explanation:

A corporation is a distinct legal organization from its shareholders. Corporations can generate revenue, pay taxes, and face legal consequences. The ultimate protection against personal responsibility is provided to owners by corporations, although forming a corporation is more expensive than creating other types of entities. Additionally, corporations demand more thorough reporting, operating procedures, and record-keeping. Corporations have power i regards to raising capital since they may do it by selling shares, which can also help them bring in employees. Enterprises with a medium to a high level of risk, those that need to acquire capital, and those that intend to be sold and corporations can be a suitable option.

Funds are handled by the trustees and directors of nonprofit, nongovernmental organizations known as foundations. The formation of independent, corporate, operational, and community foundations serves a variety of functions in their goals and localities. A foundation is a legal body that encourages charity endeavors by giving funds to unaffiliated institutions, groups, or individuals for charitable, intellectual, educational, social, or other causes. While federal departments is frequently performing the main activity of foundations, some may also run their private charitable initiatives.

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