What is a 'Corporation'?

A corporation is defined as a legal entity that is created under the authority of law, typically through legislation or a special act. This structure allows it to operate independently of its owners or shareholders, which means that it can own property, enter into contracts, and be liable in legal matters. The concept of a corporation provides a framework for gathering capital, distributing profits, and organizing the governance of a business.

While the other options relate to various legal and business concepts, they do not correctly define a corporation. For instance, the second choice refers to the status of an individual and has no relevance to the definition of a corporation. The third option pertains to concepts of voluntary consent, which is significant in personal and legal agreements but unrelated to the specific characteristics of corporate entities. Lastly, the fourth choice describes a specific document, typically known as the memorandum or articles of association, which outlines corporate objectives rather than defining what a corporation is. Thus, the first choice clearly stands out as the accurate definition of a corporation.