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Corporation and Cost-Benefit Analysis:
Corporation
A business form created by state governments upon the filing of an application and payment of a fee. It creates a legal entity, separate from its owner. A company also eliminates any personal liability the owners have for the business.
Cost-Benefit Analysis
This is a method of determining whether the results or outcome of a business undertaking outweigh the costs connected with pursuing the undertaking. Normally, cost-benefit analyses start with the extrinsic considerations of the cost of services versus the revenue it will generate. Intrinsic considerations, which are difficult to quantify, are then evaluated and the over- all "go" or "no go" decision is made.
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