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The Corporation Is a Legal Entity Separate from Its Owners;

question 103

True/False

The corporation is a legal entity separate from its owners; thus it is possible for the corporation to continue even upon the death of one or more shareholders.


Definitions:

Shares of the Business

Equity units of a corporation that represent ownership interest held by shareholders, giving them a claim on the company's profits in the form of dividends.

Stock

A type of financial security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings.

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