With respect to a corporation, select the statement that is false:
A) Its organization requires an approved charter which is governed by state law.
B) Ownership rights to the corporation are transferable.
C) A corporation is a separate legal entity from its owners.
D) A corporation cannot sue others or be sued.

Question

Quizplus · Accepted Answer

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

With Respect to a Corporation, Select the Statement That Is