Asked by Shreyans Nanavati on May 10, 2024
Verified
A corporation:
A) is legally separate from its owners.
B) is owned by stockholders.
C) has limited risk to stockholders.
D) All of the above
Corporation
A legal entity that is separate and distinct from its owners, offering limited liability and the ability to raise capital through stock.
Stockholders
Individuals or entities that own shares in a corporation, giving them ownership interest.
Limited Risk
Exposure to a relatively small possibility of loss or less severe consequences in an investment or business activity.
- Acquire knowledge of the distinguishing qualities, strengths, and weaknesses of assorted business organizations (sole proprietorship, partnership, corporation).
Verified Answer
MH
Michael HarrisMay 17, 2024
Final Answer :
D
Explanation :
All of the options correctly describe characteristics of a corporation. A corporation is a legal entity separate from its owners, owned by stockholders who share in its profits and losses, and offers limited liability to its stockholders, meaning they are not personally responsible for the corporation's debts.
Learning Objectives
- Acquire knowledge of the distinguishing qualities, strengths, and weaknesses of assorted business organizations (sole proprietorship, partnership, corporation).