What characterizes a private corporation?

A private corporation is primarily characterized by its purpose and ownership structure. It is formed to operate for private benefit, meaning that its activities are directed towards achieving economic benefits for its shareholders, rather than serving the public at large.

This focus on private gains distinguishes private corporations from public corporations, which are typically established to benefit the public or serve governmental functions. While public corporations have duties assigned by the state and may focus on public welfare, private corporations prioritize the interests of their shareholders, which is why they are categorized differently.

Moreover, a private corporation does not have its ownership held entirely by the government, as would be the case with state-owned enterprises. Thus, operating solely for personal or private benefits encapsulates the core essence of what a private corporation is designed to achieve.