What type of corporation is established primarily for business or profit?

Prepare for your Partnership and Corporation Exam with engaging flashcards and multiple-choice questions. Each question comes with hints and detailed explanations. Boost your confidence and ace the exam!

The classification of corporations is often based on their primary purpose, and a civil corporation is specifically established for business or profit-making endeavors. Unlike other types of corporations, which may serve non-profit purposes, such as charitable, religious, or social objectives, a civil corporation is focused on conducting commercial activities and generating profits for its shareholders.

Eleemosynary corporations are predominantly formed for charitable purposes and do not focus on profit generation. Ecclesiastical corporations are associated with religious institutions and their primary activities are centered around spiritual or religious services rather than profit. Lay corporations could imply those that are established for secular purposes, but they do not have the clear and direct focus on business and profit that civil corporations have.

Thus, a civil corporation stands out as the correct answer, as its foundational objective is tied closely to business activities and profit-making, serving the interests of its owners and stakeholders in the commercial sphere.

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