Bob GauvreauAsk Bob Gauvreau Questions Based On His Training

Business vs. Corporation #shorts

26 Mar 2024 · 0 min

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Short explanatory clip by Bob Gauvreau distinguishing a 'business' from a 'corporation'. He defines a business broadly as any entity with sales and expenses generating income (including sole proprietorships and partnerships) and defines a corporation as a specific legal form of business — a separate legal entity with its own identity that carries on operations while it has ongoing sales and expenses.

A business is any form of entity that has active sales and expenses activity to generate income. Now, a corporation is a form of a business. It's a separate legal entity that has its own identity. And it is likely a business operation that's in there as long as there's sales and expenses to generate ongoing business activity. But business could really be any form. It could be a sole proprietorship, it could be a partnership, or it could be a corporation.