Which business organization is recognized as a separate legal entity under the law?
A) Corporation.
B) Sole proprietorship.
C) Partnership.
D) All three.

Question

Quizplus · Accepted Answer

A corporation is recognized as a separate legal entity under the law, which means it can own property, sue and be sued, enter into contracts, and pay taxes separately from its owners. In contrast, sole proprietorships and partnerships do not have separate legal entities from their owners, meaning the owner is personally liable for any debts or legal issues.

Which Business Organization Is Recognized as a Separate Legal Entity