The name "Corporation" comes from the Latin word "Corporatio" and means "union". Corporation is an association of several large enterprises or other business entities related to a single economic goal.
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The difference between the corporation from other associations is that all decisions are made by the collegial board of directors. In any corporation, there is also a so-called "delegation of authority", which provides for the presence of several separate centers that make one or another decision, but in the future agreeing on the general advice.
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Usually, a corporation, having several members in its composition, diversify (shares) business in various directions, but ultimately the goal remains united. To do this, several business areas are necessarily developed in the corporation, while economic risks are divided between all participants.
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Corporations are engaged in the economic market dominant direction. For example, in the building market, the corporation is called the association of construction enterprises and firms that cover more than 5% of the entire market. A strong position on any market allows corporations to dictate their economic conditions and form new products.
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The largest and most well-known corporations in their work follow the methods of social orphanage and attractiveness, thereby forming their positive image in society. Also, all corporations adhere to the external visual culture, there is a corporate style - all the offices of the corporation are drawn up in one decision, the staff adhere to the uniform style of behavior and image.
Until recently, the work of corporations was regulated by a variety of laws and subtitle acts related to the development of the Russian economy. Since 2014, a new article has been submitted to the Civil Code of the Russian Federation for №65.1, which is called "corporate and unitary legal entities". This article expands the concept, methods of work and the responsibility of corporations.
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