Final answer:
Limited liability is the legal principle that protects the personal assets of shareholders from corporate debts and liabilities. Corporations, being separate legal entities, can raise capital, conduct business like individuals, and have expanded rights that come with moral responsibility debates.
Step-by-step explanation:
The legal principle designed to protect the corporate structure that accompanies corporate status as an entity, corporate constitutional rights, and corporate citizenship is limited liability. Limited liability ensures that the personal assets of shareholders are protected from the company's liabilities. A corporation, being a legal entity, can perform many legal functions that individuals do, such as entering into contracts, suing or being sued, and borrowing money or selling shares to raise capital. As a distinct legal entity, the corporation has an existence separate from its owners, providing a layer of protection to the personal wealth of shareholders.
Corporate constitutional rights relate to the way in which corporations are treated under the law, with notable cases highlighting the expansion of these rights, such as the Supreme Court rulings allowing political contributions and exemptions based on religious beliefs. As these entities are given rights, questions arise about their moral responsibilities to various stakeholders, such as shareholders, employees, customers, and the community at large. Additionally, corporate status allows businesses to exist beyond the lifespan of their founders, easing the transfer of ownership through stocks, providing name recognition, and fostering industrial growth and job creation by reducing the personal risk for entrepreneurs.