A corporation is an entity _____.
A) that is organized according to state or federal statutes and in which ownership is divided into shares of stock
B) that is known for its ease of formation
C) that terminates its existence with the death of the owner
D) that pays tax on the owner's tax returns

Question

Quizplus · Accepted Answer

A corporation is a legal entity that is formed and recognized by state or federal law. It is owned by shareholders who own shares of stock in the company. This ownership structure allows for the easy transfer of ownership and raises capital through the sale of stock. The corporation itself is responsible for paying taxes on its income, separate from the taxes of its shareholders.

A Corporation Is an Entity _____