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Mutual company. A corporation that is owned by a group of members and that distributes income in proportion to the amount of business that members do with the company. Mutual Company. A company structure in which the company's owners are also its clients.
The corporation is a separate legal entity that is owned by stockholders. A general corporation may have an unlimited number of stockholders that, due to the separate legal nature of the corporation, are protected from the creditors of the business.A stockholder's personal liability is usually limited to the amount of investment in the corporation and no more.Advantages. 1  Owners' personal assets are protected from business debt and liability. 2  Corporations have unlimited life extending beyond the illness or death of the owners.he corporation is a separate legal entity that is owned by stockholders. A general corporation may have an unlimited number of stockholders that, due to the separate legal nature of the corporation, are protected from the creditors of the business.