The distinguishing feature of a corporation is that:

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The distinguishing feature of a corporation is that it is a legally defined, artificial being, separate from its owners. This means that the corporation can enter into contracts, sue and be sued, and own property in its own name, separate from the personal assets of its owners. This is known as limited liability, and it is a key advantage of the corporate form. While shareholders may in some cases be held liable for corporate debts or obligations, this is generally limited to their investment in the corporation and does not extend to their personal assets. A corporation is not the same as a partnership or sole proprietorship, where the owners are personally liable for all the debts and obligations of the business.

The Distinguishing Feature of a Corporation Is That