Which of the following is not true of a corporation?
A) It may buy own and sell property.
B) It may sue and be sued.
C) The acts of its owners bind the corporation.
D) It may enter into binding legal contracts in its own name.

Question

Quizplus · Accepted Answer

The acts of the owners do not bind the corporation. A corporation is a separate legal entity from its owners, meaning the corporation is responsible for its own debts and obligations, and the owners are not personally liable unless they have signed personal guarantees or engaged in wrongful conduct.

Which of the Following Is Not True of a Corporation