The best description of a corporation is: a. A corporation is a legal entity that exists separately
Question:
The best description of a corporation is:
a. A corporation is a legal entity that exists separately and independently of any shareholder or director, provides limited liability to investors and is organized under federal laws for establishing a valid legal corporation.
b. A corporation is a legal entity formed under state law and expires after 100 years unless it is renewed by its shareholders.
c. A corporation is a collection of shareholders that has limited liability and lasts until every shareholder has died.
d. A corporation is a separate legal entity independent from its shareholders or directors, is organized under state law and enjoys limited liability for its shareholders though in some instances individual liability may be imposed.
Fundamentals of Cost Accounting
ISBN: 978-0077398194
3rd Edition
Authors: William Lanen, Shannon Anderson, Michael Maher