The organizational form defined as a business that is legally considered an entity separate from its owners and is liable for its own debts is a ________.

Question

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A corporation is a legal entity that is separate from its owners (shareholders) and is liable for its own debts. The other options, sole proprietorship and partnership, do not create a separate legal entity and the owners are personally liable for the business's debts. A limited partnership is a hybrid organizational form that has both general and limited partners, but it is not a separate legal entity.

The Organizational Form Defined as a Business That Is Legally