A corporation is
A) owned by stockholders who enjoy the privilege of limited liability.
B) easily divisible between owners.
C) a separate legal entity with perpetual life.
D) all of these.

Question

Quizplus · Accepted Answer

A corporation is owned by stockholders who enjoy the privilege of limited liability, which means that their personal assets are protected in case of the company's failure or bankruptcy. It is easily divisible between owners as shares of stock can be bought and sold. A corporation is also a separate legal entity, which means it has its own rights, responsibilities, and liabilities separate from its owners, and it enjoys perpetual life, which means it continues to exist even if the original owners die or sell their shares. Therefore, all of these options make up a corporation.

A Corporation Is