A business entity that is legally separated from the owners is a __________.

Question

Quizplus · Accepted Answer

A corporation is a separate legal entity that is distinct from its owners. This means that the company can enter into contracts, buy and sell property, sue and be sued, and be held liable for its own actions. The owners of a corporation are shareholders, who have limited liability and are not personally responsible for the debts or liabilities of the business. General and limited partnerships and proprietorships are not legally separated from their owners and do not offer limited liability protection.

A Business Entity That Is Legally Separated from the Owners