ShmoopTube

Where Monty Python meets your 10th grade teacher.

Search Thousands of Shmoop Videos


Personal Finance Videos 520 videos

Finance: What is a Corporation? 89 Views


Share It!


Description:

What is a corporation? Corporations are legal bodies. Bodies exist in various forms: LLC (Limited Liability Corporation), S-Corporation (now with pass-through tax treatment...think: accountants' partnership), and C-Corporation (which is how most of the big guys are set up).

Language:
English Language

Transcript

00:03

Finance a la shmoop what is a corporation? corp-o-ration.. [Mouth saying syllables of corporation]

00:11

see the Corp in there? well it's latin short for corpse or

00:16

body so a corporation may or may not be cold and covered with maggots [Man disguised as a corpse wakes up and screams]

00:21

corporations are just legal bodies they're generally set up so that

00:25

there's a clear legal distinction between things and individual does and

00:29

things that the company she works for does let's say you want to set up your [mime artists at the window of a shop]

00:34

own mime training studio brother can you spare a mime, but then you hit a wall

00:39

one of your mime trainees becomes badly injured while trying to get out of a [mime trainee gets injured while attempting to get out of a glass box]

00:43

glass box and you get sued you lose..wow you're totally speechless so your

00:50

corporation which was basically just you ten grand in the bank and a hat rack [Laptop showing $10.000 in the bank beside a hatrack]

00:55

full of berets well it loses everything you turn over your 10k to the sue-er

01:01

the one who sued you and you dust off your hands and move on try new venture [mime dusts off hands]

01:06

tapping into your prior experience as a mime therapist well legally the guy who

01:11

sued you while working for the corporation can't sue you personally

01:15

your $350,000 home is untouchable yeah who knew miming paid so well same deal [Mimes $350,000 home]

01:22

on that untouchable-ness of your Prius and the untouchable-ness of your

01:26

collection of invisible ropes, the legal body of the corporation threw itself on [Mime pretending to move along an invisible rope]

01:30

the landmine of your lawsuit and took the blow while you just walked away [Mime artist moon-walking off stage]

Related Videos

GED Social Studies 1.1 Civics and Government
39792 Views

GED Social Studies 1.1 Civics and Government

Finance: What is Bankruptcy?
260 Views

What is bankruptcy? Deadbeats who can't pay their bills declare bankruptcy. Either they borrowed too much money, or the business fell apart. They t...

Finance: What is a Dividend?
1774 Views

What's a dividend? At will, the board of directors can pay a dividend on common stock. Usually, that payout is some percentage less than 100 of ear...

Finance: How Are Risks and Rewards Related?
589 Views

How are risk and reward related? Take more risk, expect more reward. A lottery ticket might be worth a billion dollars, but if the odds are one in...

Fake News
11936 Views

How do you tell fake news from real news?