An organized body, especially a business, that has been granted a state charter recognizing it as a separate legal entity having its own rights, privileges, and liabilities distinct from those of the individuals within the entity. A corporation can acquire assets, enter into contracts, sue or be sued, and pay taxes in its own name. Corporations issue shares of stock to individuals supplying ownership capital and issue bonds to individuals lending money to the business. The corporation is a desirable organization for a business entity for a variety of reasons, including the increased capability such an entity has to raise capital. Most large firms, especially those engaged in manufacturing, are organized as corporations. Compare partnership. See also proprietorship, incorporate, limited liability, unlimited liability.