Quick Answer: A company is a legal entity representing an association of legal persons with a shared objective, such as generating profit or benefiting society. Depending on the jurisdiction, companies can take on various forms, including voluntary associations, nonprofit organizations, business entities, financial entities, banks, and educational institutions. Companies have evolved to share common legal features, such as a separate legal personality, limited liability, transferable shares, investor ownership, and a managerial hierarchy. The term "company" may or may not be synonymous with corporation, partnership, firm, or society. Companies are governed by company law, also referred to as corporate law in many regions. Incorporated companies are created through state registration, whereas unincorporated companies are not. When a company closes, it may undergo liquidation to settle its affairs and terminate its legal obligations.