Which of the following is legally a separate entity from its owner(s)?
A) Sole proprietorship and corporation only
B) Sole proprietorship and partnership only
C) Corporation only
D) Corporation and partnership only

Question

Quizplus · Accepted Answer

A corporation is a legal entity that is separate and distinct from its owners (shareholders). This means it can enter into contracts, own assets, and incur liabilities in its own name. Sole proprietorships and partnerships, on the other hand, do not have this legal separation and their owners are personally liable for the debts and obligations of the business.

Which of the Following Is Legally a Separate Entity from Its