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Research Paper Undergraduate 2,104 words

Types of Corporations: Formation, Financing, and Takeovers

~11 min read 7 sections Business · Corporation
Abstract

This paper provides a comprehensive overview of modern corporations, drawing on legal definitions, statutory frameworks, and academic literature. It begins by defining the corporation as an artificial legal person and surveys the major types — including public, private, for-profit, non-profit, domestic, foreign, alien, publicly held, closely held, and subchapter S corporations — as well as the distinction between de jure and de facto corporations. The paper then outlines the general steps required to form a corporation, explains common corporate financing methods such as debt and equity securities, and describes the respective roles, duties, and rights of directors, officers, and shareholders. It concludes with an examination of corporate takeover strategies, including hostile takeovers, tender offers, exchange tender offers, and cash tender offers.

Key Takeaways
  • Introduction: Scope and purpose of the paper
  • Types of Corporations: Survey of all major corporation categories
  • Forming a Corporation: Step-by-step corporate formation process
  • Corporate Financing: Debt and equity securities as financing methods
  • Roles, Duties, and Rights of Directors, Officers, and Shareholders: Legal rights and duties of corporate stakeholders
  • Corporate Takeover Strategies: Hostile takeovers, tender offers, and exchange offers
  • Conclusion: Summary of key findings on corporations
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What makes this paper effective

  • The paper uses a clear, enumerated structure that guides the reader systematically through a complex legal and business topic, making it easy to follow even for readers unfamiliar with corporate law.
  • It grounds abstract concepts — such as the corporation as an "artificial person" — in authoritative legal definitions (Black's Law Dictionary) and then immediately qualifies those definitions with scholarly commentary, demonstrating critical engagement with sources.
  • The use of tabular summaries (Tables 1 and 2) efficiently organizes comparative information about corporation types and takeover strategies, reducing cognitive load while preserving analytical depth.

Key academic technique demonstrated

The paper demonstrates effective synthesis of multiple source types — legal dictionaries, law review articles, business journals, and academic books — to build a unified, multi-dimensional explanation of a technical subject. By weaving citations from different disciplines into a coherent narrative, the writer shows how to use secondary sources not merely as decoration but as genuine evidence for each claim.

Structure breakdown

The paper follows a classic expository structure: an introduction that maps the paper's scope, six thematic body sections (definition, types, formation, financing, rights of parties, and takeovers), and a conclusion that recaps every major finding. Each body section is self-contained but logically sequenced, moving from conceptual foundations to procedural details to stakeholder rights and finally to strategic corporate actions.

Essay 2,104 words

Introduction

The modern corporation has a lengthy history spanning four centuries, but this business model has expanded greatly to include a wide range of corporation types with fundamentally different ownership structures and goals (Rao 2). Given the global impact that corporations have on the economy today, it is important to gain a better understanding of corporations — most especially their similarities and differences and how these affect the manner in which they operate. To this end, this paper reviews the relevant literature concerning modern corporations to provide their background and an overview, a discussion of different types of corporations, and a description of how corporations are formed. A discussion of corporate financing practices is followed by a description of the respective roles, duties, and rights of directors, officers, and shareholders. Finally, a discussion of different types of corporate takeover strategies is followed by a summary of the research and its important findings in the conclusion.

6 Sections Hidden · 1,320 words
Types of Corporations520 words
According to the definition provided by Black's Law Dictionary (1991), a corporation is "an artificial person or legal entity created by or under the authority of the laws of a state. The law treats the corporation itself as a person which can…
Forming a Corporation150 words
Although specific requirements vary by jurisdiction, the following general steps are required to form a corporation:
Corporate Financing80 words
The most common corporate financing approach is to issue and sell corporate debt or equity securities. Debt securities are essentially loans to the corporation, while equity securities…
Roles, Duties, and Rights of Directors, Officers, and Shareholders210 words
The roles and duties of directors and officers are controlled by statutory law (Albino et al. 32). In general, directors and officers perform essentially the same role…
Corporate Takeover Strategies180 words
Just as there are a number of different types of corporations, so too are there a number of different corporate takeover strategies, including those described in Table 2 below.…
Conclusion180 words
The research showed that corporations are artificial persons or legal entities formed pursuant to the laws of a state. Although the concept of an artificial person must be understood figuratively,…

Works Cited

Black's Law Dictionary. St. Paul, MN: West Publishing Co., 1991. Print.

Coates, John C. "Measuring the Domain of Mediating Hierarchy: How Contestable Are U.S. Public Corporations?" Journal of Corporation Law 24.4 (1999): 837–841. Print.

Hopkins, Bruce R. Starting and Managing a Nonprofit Organization: A Legal Guide. Hoboken, NJ: Wiley, 2013. Print.

Kelly, Marjorie. "The Divine Right of Capital." Tikkun (2000): 33. Print.

Laurence, Beth. "How to Form a Corporation." Nolo, 2016. Web.

Lipartito, Kenneth, and David B. Sicilia. Constructing Corporate America: History, Politics, Culture. New York: Oxford University Press, 2004. Print.

Miller, Alan N. "Corporate Transformations: The New Role of Proxy Contests." Review of Business 15.3 (1994): 15–21. Print.

Paust, Jordan J. "Human Rights Responsibilities of Private Corporations." Vanderbilt Journal of Transnational Law 35.3 (2002): 801–808. Print.

Rao, Venkatesh. "A Brief History of the Corporation." Ribbon Farm, 8 June 2011. Web.

Scholten, Ralph. "Investment Decisions and Managerial Discipline: Evidence from the Takeover Market." Financial Management 34.2 (2005): 35–41. Print.

Sridharan, Uma V., and Marc R. Reinganum. "Determinants of the Choice of the Hostile Takeover Mechanism: An Empirical Analysis of Tender Offers and Proxy Contests." Financial Management 24.1 (1993): 57–63. Print.

Steinberg, Joel. "Subchapter S Corporation Going Public." The CPA Journal 68.9 (1998): 68. Print.

Swanson, Zane, and Bin Srinidhi. The Capital Structure Paradigm: Evolution of Debt/Equity Choices. Westport, CT: Praeger. Print.

Key Concepts in This Paper
Corporate Law Artificial Person Shareholder Rights Board of Directors Equity Securities Hostile Takeover Subchapter S De Facto Corporation Nonprofit Organization Tender Offer
Cite This Paper
PaperDue. (2026). Types of Corporations: Formation, Financing, and Takeovers. PaperDue. https://www.paperdue.com/study-guide/types-of-corporations-formation-financing-takeovers-2156489

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