Which of the following statements is true regarding the characteristics of a corporation?
A) A corporation as a legal entity is not distinct from its owners.
B) A corporation is owned by shareholders.
C) The shareholders are responsible for the corporation's liabilities.
D) The board of directors implements the decisions of the officers.

Question

Quizplus · Accepted Answer

A corporation is owned by shareholders who have limited liability, meaning that they are not personally responsible for the corporation's debts or obligations. The corporation is a separate legal entity from its owners, meaning that it can enter into contracts, sue or be sued, and own property in its own name. The board of directors is responsible for overseeing the corporation's management and major decisions, while officers are responsible for implementing those decisions on a day-to-day basis.

Which of the Following Statements Is True Regarding the Characteristics