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The business entity formed under state law that has a separate legal identity from its owners is a?

1) Sole proprietorship
2) Partnership
3) Corporation
4) Limited liability company

User Elekwent
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Final answer:

A corporation is the business entity formed under state law that has a separate legal identity from its owners.

Step-by-step explanation:

The business entity formed under state law that has a separate legal identity from its owners is a corporation.

Unlike a sole proprietorship or a partnership, a corporation is a separate legal entity, meaning that it has its own legal rights and responsibilities. The owners of a corporation, known as shareholders, have limited liability for the debts and obligations of the corporation. This means that their personal assets are generally protected from business liabilities.

For example, if a corporation goes bankrupt and cannot pay its debts, the shareholders are not personally responsible for covering those debts. In addition, a corporation can sell shares of stock to raise funds, which allows for greater access to capital and potential for growth.

User Jasilva
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