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. A) Ability to acquire capital B) Limited liability of stockholders C) Separate legal existence D) Continuous life E) Transferable ownership rights

Question

03-06-2021
Business

contestada

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. A) Ability to acquire capital B) Limited liability of stockholders C) Separate legal existence D) Continuous life E) Transferable ownership rights

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anthougo anthougo · Answer 1 · 2021-06-03T20:30:53+02:00

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.