A legal entity owned by stockholders whose liability is limited to the value of their stock ownership is known as a(n):

Question

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A corporation is a business organization that is owned by its stockholders and its liability is limited to the value of its stock ownership. This means that the personal assets of the stockholders are not at risk if the corporation is sued or incurs debts. Sole proprietorship and partnership are not legal entities and do not have limited liability. Nonprofit organizations and producer cooperatives may have limited liability, but they are not owned by stockholders.

A Legal Entity Owned by Stockholders Whose Liability Is Limited