A corporation is
A) owned by stockholders who enjoy the privilege of limited liability.
B) easily divisible between owners.
C) a separate legal entity with unlimited life.
D) All of the above

Question

Quizplus · Accepted Answer

A corporation is owned by stockholders who have limited liability, meaning that their personal assets are protected from any legal actions taken against the corporation. The ownership shares (stocks) of the corporation are easily divisible between owners, and a corporation is considered a separate legal entity with unlimited life, meaning that it can continue to exist even if the original owners or shareholders are no longer involved. Therefore, all three options (A, B, and C) are correct, and the best choice is D, which includes all of the above.

A Corporation Is