With respect to a corporation, select the statement that is false:
A) A corporation cannot sue others or be sued.
B) Ownership rights to the corporation are transferable.
C) Its organization requires an approved charter which is governed by state law.
D) A corporation is a separate legal entity from its owners.

Question

Quizplus · Accepted Answer

A corporation can both sue others and be sued. It is a legal entity that has the ability to enter into contracts and engage in legal actions like any individual person, but with limited liability for its owners.

With Respect to a Corporation, Select the Statement That Is