What is the difference between corporation and organization?

Definitions

corporation

- Referring to a large company that is legally recognized as a separate entity from its owners.

- Talking about a business organization that has shareholders and issues stocks.

- Describing a company that has a hierarchical structure with a board of directors and officers.

organization

- Referring to a group of people who work together towards a common goal or purpose.

- Talking about a structured group with specific roles and responsibilities.

- Describing a non-profit or charitable group that aims to help a particular cause or community.

List of Similarities

• 1. Both refer to groups of people working together towards a common goal.
• 2. Both can have a hierarchical structure with different levels of authority.
• 3. Both can be involved in business or non-profit activities.
• 4. Both require coordination and cooperation among members.
• 5. Both can have legal recognition and status.

What is the difference?

• 1. Legal status: Corporation is a legal entity that is separate from its owners, while organization may or may not have legal recognition.
• 2. Ownership: Corporation is owned by shareholders, while organization may be owned by members or have no ownership structure.
• 3. Profit motive: Corporation is primarily focused on making a profit, while organization may have other goals beyond financial gain.
• 4. Structure: Corporation has a formal hierarchical structure with a board of directors and officers, while organization may have a more flexible or informal structure.
• 5. Scope: Corporation is typically larger and more complex than organization, which can vary in size and complexity.

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Remember this!

Corporation and organization both refer to groups of people working together towards a common goal. However, the difference between corporation and organization lies in their legal status, ownership structure, profit motive, formal structure, and scope. A corporation is a large company that is legally recognized as a separate entity from its owners, with a focus on making a profit and a formal hierarchical structure. An organization is a group of people with a common goal, which may or may not have legal recognition, ownership structure, or a formal hierarchy.