The corporation is an entity separate and distinct from its owners. TrueFalse

1 answer:

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True. A corporation is a legal entity separate and distinct from its owners. Corporations enjoy most of the responsibilities and rights that an individual possesses. That is to say that a corporation has the right loan and borrow money, enter into contracts, sue and be sued, hire employees, own assets and pay taxes. The most important aspect of a corporation is limited liability i.e. shareholders have the right to participate in the profits, through dividends and appreciation of stock, but are not held personally liable for the company's debts.

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