A company is a legal entity.Which of these is a feature of a legal entity?
A)Has shareholders
B)Must pay dividends
C)Can own assets
D)Must prepare reports

Question

Quizplus · Accepted Answer

A legal entity can own assets, which means that it can acquire, use, and transfer property in its own name, separate from its owners or employees. Shareholders, dividends, and preparing reports are not necessary features of a legal entity, as not all legal entities are corporations (which have shareholders) and not all of them need to distribute dividends or prepare reports.

A Company Is a Legal Entity