A corporation is a legal entity
A)in conjunction with its owners
B)separate from its owners
C)formed by the laws of the U.S.Department of Commerce
D)under the laws established by the SEC

Question

Quizplus · Accepted Answer

A corporation is considered a separate legal entity from its owners, also known as shareholders. This means that the corporation can enter into contracts, incur debts, and file lawsuits on its own behalf. This separation of ownership and control is a defining feature of a corporation. The laws governing corporations vary by state, but are typically established through state corporation statutes. The U.S. Department of Commerce and SEC may have oversight of some aspects of corporations, but they do not directly establish corporations or their legal status.

A Corporation Is a Legal Entity