Comprehensive Corporate
Law & Governance Terms
for Students 2026 | Q&A &
Rationales
|Graded A+ | Guaranteed
success|
Updated 2026 Questions and Answers
100% Verified Exam Prep and Comprehensive
Rationales
Included
, Corporation A legal entity separate from its owners and managers that can own property, enter
contracts, sue, and be sued.
Corporate personhood The legal idea that corporations are treated as "persons" for certain legal purposes.
Board of directors The group elected by shareholders to oversee the overall management and major
policies of a corporation.
Corporate officers Managers hired by the board to run the corporation's daily business operations.
Shareholders Owners of a corporation who hold shares of stock.
Limited liability Protection that limits shareholders' losses to the amount they invested in the
corporation.
Dividends Profits paid out by a corporation to its shareholders.
Retained earnings Profits kept by the corporation instead of being distributed to shareholders.
Domestic corporation A corporation doing business in the state where it was incorporated.
Foreign corporation A corporation doing business in a state other than the one where it was
incorporated.
Alien corporation A corporation formed in another country.
Public corporation A corporation formed by the government for a political or governmental purpose.
Publicly held corporation A corporation whose shares are publicly traded in securities markets.
Nonprofit corporation A corporation formed without a profit-making purpose, such as a charity, hospital, or
school.
Close corporation A corporation whose shares are held by a small number of people and are not
publicly traded.
Law & Governance Terms
for Students 2026 | Q&A &
Rationales
|Graded A+ | Guaranteed
success|
Updated 2026 Questions and Answers
100% Verified Exam Prep and Comprehensive
Rationales
Included
, Corporation A legal entity separate from its owners and managers that can own property, enter
contracts, sue, and be sued.
Corporate personhood The legal idea that corporations are treated as "persons" for certain legal purposes.
Board of directors The group elected by shareholders to oversee the overall management and major
policies of a corporation.
Corporate officers Managers hired by the board to run the corporation's daily business operations.
Shareholders Owners of a corporation who hold shares of stock.
Limited liability Protection that limits shareholders' losses to the amount they invested in the
corporation.
Dividends Profits paid out by a corporation to its shareholders.
Retained earnings Profits kept by the corporation instead of being distributed to shareholders.
Domestic corporation A corporation doing business in the state where it was incorporated.
Foreign corporation A corporation doing business in a state other than the one where it was
incorporated.
Alien corporation A corporation formed in another country.
Public corporation A corporation formed by the government for a political or governmental purpose.
Publicly held corporation A corporation whose shares are publicly traded in securities markets.
Nonprofit corporation A corporation formed without a profit-making purpose, such as a charity, hospital, or
school.
Close corporation A corporation whose shares are held by a small number of people and are not
publicly traded.
