For-profit corporation
Encyclopedia
A for-profit corporation is a corporation
that is intended to operate a business
which will return a profit
to the owners. A for-profit corporation, depending on the jurisdiction
to which it is incorporated, may be operated either as a stock corporation
or as a non-stock corporation
.
A non-profit corporation, on the other hand, is always a non-stock corporation.
Corporation
A corporation is created under the laws of a state as a separate legal entity that has privileges and liabilities that are distinct from those of its members. There are many different forms of corporations, most of which are used to conduct business. Early corporations were established by charter...
that is intended to operate a business
Business
A business is an organization engaged in the trade of goods, services, or both to consumers. Businesses are predominant in capitalist economies, where most of them are privately owned and administered to earn profit to increase the wealth of their owners. Businesses may also be not-for-profit...
which will return a profit
Profit (economics)
In economics, the term profit has two related but distinct meanings. Normal profit represents the total opportunity costs of a venture to an entrepreneur or investor, whilst economic profit In economics, the term profit has two related but distinct meanings. Normal profit represents the total...
to the owners. A for-profit corporation, depending on the jurisdiction
Jurisdiction
Jurisdiction is the practical authority granted to a formally constituted legal body or to a political leader to deal with and make pronouncements on legal matters and, by implication, to administer justice within a defined area of responsibility...
to which it is incorporated, may be operated either as a stock corporation
Stock corporation
A stock corporation is a for-profit corporation which the ownership of the corporation is expressed by shares of stock. This allows for the ownership of the corporation to be readily determined, as shares are property, and are transferrable as any other property such as money, subject to any...
or as a non-stock corporation
Non-stock corporation
A non-stock corporation is a corporation that does not have owners represented by shares of stock. That type of corporation is called a stock corporation. Instead, a non-stock corporation typically has members, who are the functional equivalent of stockholders in a stock corporation Non-stock...
.
A non-profit corporation, on the other hand, is always a non-stock corporation.