Question

What is a corporation ?

A. A situation where many different companies in one industry are owned and run by the same people

B. a market that relies on trading of goods and services without the use of money

C. A business owned by many people called Stockholders

D. a system in which people earn wages and buy the goods and services they choose

Answer 1

A stockholder is considered to be separate from the corporation and as a result will have limited liability as far the corporation's obligations. so not C.

Not B either since money is essential for running corporations.

A. is not really a corporation since its a situation. That situation is a conglomerate.

I would have to go with the last one, D.

Answer 2

A corporation is a business owned by many people called stockholders.

A corporation is a legal entity that is separate and different from its owners where it enjoys the rights and responsibilities such as entering of contracts, borrowing of money and loans, sue and be sued, hiring staff, owning assets and paying taxes. A corporation enjoys the limited liability aspect where shareholders benefit from profits in form of dividends and stock appreciation but are not directly liable for debts of the company.