The form of business organization that is legally separate from its owners is a:
A)Partnership.
B)Sole proprietorship.
C)Corporation.

Question

Quizplus · Accepted Answer

A corporation is a legal entity that is separate from its owners, which means that it can enter into contracts, own assets, and sue or be sued in its own name. The owners of a corporation are shareholders who own stocks in the company and have limited liability, which means that their personal assets are not at risk if the corporation is sued or incurs debts. Partnerships and sole proprietorships, on the other hand, are not legally separate from their owners, which means that the owners have unlimited liability for the debts of the business.

The Form of Business Organization That Is Legally Separate from Its