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In general terms, the principals of a corporation are the owners or investors, referred to as shareholders or stockholders. The agents of the corporation are generally considered to be the board of directors, officers or other persons the corporation authorizes to act on its behalf.
Characteristics of a Corporation. A corporation is a legal entity, meaning it is a separate entity from its owners who are called stockholders. A corporation is treated as a âpersonâ with most of the rights and obligations of a real person. A corporation is not allowed to hold public office or vote, but it does pay income taxes.