Which of the following is a characteristic of the corporate form of business?

Question

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The corporate form of business is a separate legal entity, which means that the business is considered a legal entity separate from its owners. This means that it has the ability to enter into contracts, sue and be sued, and incur debts in its own name.

Choice A, mutual agency, is a characteristic of a partnership where each partner has the authority to act on behalf of the other partners.

Choice C, relatively easy to form, is not necessarily a characteristic of the corporate form of business as it involves complex legal formations and documentation.

Choice D, owners have unlimited liability for the debts of the business, is a characteristic of a sole proprietorship or partnership where the owners are personally liable for the debts of the business. However, in the corporate form of business, the owners' liability is limited to their investment in the business.

Which of the Following Is a Characteristic of the Corporate