The fundamental repercussions of a corporation's possessing a separate and distinct legal identity bind the internal stakeholders,who are solely responsible for its debts and other liabilities.

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A corporation's separate legal identity means that it is an independent entity responsible for its own debts and liabilities, not the internal stakeholders (such as shareholders), who generally have limited liability.

The Fundamental Repercussions of a Corporation's Possessing a Separate and Distinct