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

Question

Quizplus · Accepted Answer

A corporation is recognized as a separate legal entity under the law, distinct from its owners or shareholders. As a result, a corporation can enter into contracts, own property, and sue or be sued in its own name, among other responsibilities and advantages. Sole proprietorships and partnerships do not have this same legal separation from their owners, and thus have different rights and responsibilities under the law.

Which Business Organization Is Recognized as a Separate Legal Entity