A ___ is a legal entity that exists separate from its owners, protects the owners from personal liability, and gives the firm a life of its own beyond that of its owners.

Question

Quizplus · Accepted Answer

The statement fits the definition of a corporation, as it is a legal entity that is separate from its owners (shareholders), protects owners from personal liability (limited liability), and has a life beyond that of its owners. Sole proprietorships and partnerships do not offer limited liability, while limited liability partnerships are a variation of a partnership, rather than a separate legal entity. An angel investor is an individual or group that provides funding for a new, typically high-growth potential business, and is not a legal entity.

A ___ Is a Legal Entity That Exists Separate from Its