Corporations are legal entities separate from their owners, which means they can own property, be liable, pay taxes, and enter into contracts independently of the people who own them. This separation provides the owners (shareholders) with limited liability protection.

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Corporation

Question 13

Multiple Choice

corporation

A) A form of business where a designer collaborates with a firm.
B) A form of business where two or more individuals share the benefits and the risks.
C) A form of business where the company is separate from its owners.
D) The simplest form of business, yet the most risky.

Correct Answer: