A corporation is a legal entity
A) held jointly by its owners and management.
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, which means it has its own rights and obligations independent of those who own it. This separation provides legal protections for the owners' personal assets from the corporation's liabilities.

A Corporation Is a Legal Entity