Corporations A corporation is an artificial being that is created by law. Often called a ''legal entity,'' a corporation has the powers of individual in that it can sue and be sued, make and be party to contracts, and acquire property in its own name. Although only about 15 of all business are incorporated, the corporation is the dominant from of business organization. It account for nearly 90 percent of business receipts and 80 percent of net profits. Since corporations employ millions of people and have many thousands of shareholders, their activities affect the lives of everyone. Although corporations are involved in all types of business, manufacturing corporations account for the largest portion of corporate business receipts and net profits. The major parties in a corporation are the stockholders, the board of directors, and the president.