Angelita Valdes-Zamarripa
March 6, 2018
PLA 2433: 20437
Chapter 7 Questions
1. What do we mean when we say that corporations are “statutory entities”?
What we mean when we say that corporations are statutory entities is that they are created and
permitted by laws of the state of incorporation. State statues govern the formation, operation and
dissolution of the corporations.
2. What is the difference between a public and a private corporation?
A public corporation is formed to meet a specific governmental or political purpose, while a private
corporation is formed to conduct a privately-owned business.
3. What is the difference between a profit and a not for profit corporation?
A profit corporation is created to conduct business for profit and can distribute profits to shareholders in
the form of dividends. A non-profit corporation is formed to operate charitable institutions, colleges,
universities, and other not-for- profit entities.
