A corporation, also known as a company or enterprise, is a legal entity created by a group of individuals to conduct business and engage in profit-making activities. It is organized under laws set forth by the country and state in which it is established. Corporations are defined by their separate legal identity, meaning they are recognized as a distinct entity from its owners and employees. This allows them to purchase property and obtain loans, hire employees, issue stock, and be liable for taxes – all independently from their shareholders. In other words, corporations have the same legal rights as a person.