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irga5000 [103]
3 years ago
15

According to _____________, as an entity separate and distinct from its owners, the corporation acts under its own name rather t

han in the name of its stockholders. A) Ability to acquire capital B) Limited liability of stockholders C) Separate legal existence D) Continuous life E) Transferable ownership rights
Business
1 answer:
mario62 [17]3 years ago
3 0

Answer:

According to _____________, as an entity separate and distinct from its owners, the corporation acts under its own name rather than in the name of its stockholders.

C) Separate legal existence

Explanation:

This separate legal existence means that before the law, a corporation is a distinct person, just like every other person, with rights and obligations.  It can enter into binding contracts.  It can perform business activities within the ambits of the law.  It has its own name and personality that is not intertwined with those of the owners or stockholders.  It enjoys a continuous lifespan that can only be liquidated under the laws.

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The answer is: E) franchising.

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Franchising is a type of business where a franchisor (owner of the franchise) that produces goods or services, expands his business activities through franchisees, which are affiliated local dealers or operators. Franchises are very common specially in the food industry (McDonald's, Burger King, Subway, Pizza Hut, etc.) but are also growing in other types of businesses (ReMax, 7 Eleven, UPS Store, etc.).

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