A corporation
A) is a legal entity separate from the individuals who own it.
B) receives limited rights to operate from the government that provides its charter.
C) is more costly to form than a partnership.
D) all of the above

Question

Quizplus · Accepted Answer

A corporation is a legal entity that is separate from the individuals who own it. It is created by the government through the issuance of a charter or articles of incorporation. This charter gives the corporation limited rights to operate, which can include the ability to sue and be sued, the power to borrow and lend money, and the right to own assets. Because of its separate legal status, a corporation provides its owners with limited liability protection, meaning that their personal assets are generally not at risk if the business fails or incurs debts. However, forming a corporation can be more costly and complex than forming a partnership.

A Corporation