177k views
4 votes
What is a corporation?

A. A foreign person who wants to set up a business in the United
States
B. A government group that oversees and sets rules for companies
C. A business that is set up by the courts to help pass laws about
industry
D. A business that is recognized by a state and is given certain rights
SUBMIT

User Eremzeit
by
4.6k points

1 Answer

5 votes

Answer: D. A business that is recognized by a state and is given certain rights

Explanation:

A corporation is known to be a legal organization established by law to operate and function separately from its owners known as the shareholders. The corporation is responsible for the day today running activities of the business, debt and losses rather than the shareholders and has certain rights like a person. Furthermore, the corporation can purchase and keep properties of their own, go into agreement, employ staffs to work in the corporation and so on. Thus, the profits are shared by the owners of the corporation.

User Simon Park
by
5.3k points