Asked by Azreen Azahari on Jul 27, 2024

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A corporation is a legal entity owned by stockholders whose liability is limited to the value of their stock ownership.See 3-2: The Firm

Corporation

A legal entity that is separate and distinct from its owners, capable of owning assets, incurring liabilities, and conducting business.

Stockholders

Individuals or entities that own shares in a corporation, thereby having a claim to a part of its assets and earnings.

Legal Entity

An individual, company, or organization that has legal rights and obligations, including the capacity to enter legal contracts, sue, and be sued.

  • Comprehend the effect of corporate configurations on operational activities and legal responsibilities.
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Veronica RogersJul 30, 2024
Final Answer :
True
Explanation :
A corporation's stockholders have limited liability, meaning their personal assets are protected and their liability is limited to the value of their stock ownership.