Which characteristic defines the governance of a corporation?

The characteristic that defines the governance of a corporation is that it is governed by a board of directors. This structure is fundamental to corporate governance, where the board is responsible for making key decisions on behalf of the shareholders, setting strategic direction, and ensuring that the company adheres to legal and ethical standards.

The board of directors acts as a bridge between the shareholders and the management team, providing oversight, accountability, and guidance in corporate affairs. This governance structure allows for a distribution of control and decision-making, contrasting with sole proprietorship models where one individual has complete control.

In contrast, non-profit status and dependence on government funding do not inherently relate to how a corporation is governed but rather describe the nature or financial mechanisms of certain organizations. Ownership and control structures in these alternative contexts may differ significantly from the traditional corporate governance model, emphasizing the role of a board in corporations.