Which one of the following statements is correct concerning corporations?
A)The shareholders of a corporation select the top managers of that corporation.
B)A corporation is a distinct legal entity.
C)The stockholders are usually the managers of a corporation.
D)The ability of a corporation to raise capital is quite limited.
E)The income of a corporation is taxed as personal income of the stockholders.

Question

Quizplus · Accepted Answer

A corporation is a separate legal entity from its owners, which means that it can enter into contracts, sue, and be sued in its own name.

Which One of the Following Statements Is Correct Concerning Corporations