How do corporations differ from sole proprietorships and partnerships?

Corporations differ from other business organization in the following ways:

Management

A corporation is managed by a board of directors who are appointed by the shareholders. On the other hand, a partnership and the sole proprietorship are managed by the owners. The partnership is managed by the partners and the sole proprietorship is managed by the sole trader.

Liability of Members

In a corporation, a member is not personally liable to the business debts. In partnership and sole proprietorships, members' liability is not limited and they are personally liable to business debts.

Powers

A corporation is established to carry out a specific business activity. Therefore, a company can only perform an operation that it was incorporated to do (Intra-vires: Intra-vires means the activities that a corporation is incorporated to undertake). On the other hand, sole proprietorships and partnerships are not limited in their operations.

Liquidation.

In partnership death, admission and disposal of a member lead to termination of a business. With a corporation, such circumstances don't lead to the termination of the business. A corporation has perpetual existence.