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Which of the following statements is a defining feature of a corporation?

A. The owners of a corporation face unlimited liability on debts.
B. A corporation has a legal identity that is separate from that of its owners.
C. A corporation is created by a verbal agreement.
D. A corporation that is based on a verbal agreement is also recognized by State law.
E. A corporation owns and operates units only in foreign countries.



Answer :

GinnyAnswer

Final answer:

A corporation is a business structure with a separate legal identity from its owners, providing liability protection. Corporate personhood debate questions if a corporation has a moral identity independent of its members.


Explanation:

A corporation is a business structure that provides protection from liability to individual owners, as the company is legally seen as its own entity. It has the ability to enter into contracts, sue, and be sued.

One defining feature of a corporation is that it has a legal identity that is separate from that of its owners. This separation helps protect the personal assets of the owners from the debts and liabilities of the corporation.

Corporate personhood is a controversial aspect of modern capitalism whereby the question of whether a corporation has a moral identity separate from the individuals who compose it is debated.


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