Why Is It Possible for a Corporation to Enter into Contracts,acquire

question 36

Multiple Choice

Why is it possible for a corporation to enter into contracts,acquire assets,incur obligations,and enjoy protection against the seizure of its property?

• A)The number of owners,and hence the spread of risk among these owners,is not limited.
• B)Its owners are liable for any obligations it enters into.
• C)The province in which the corporation is incorporated provides safeguards against any wrongdoing by the corporation.
• D)It is a legally defined,artificial entity that is separate from its owners.
• E)Corporations represent their owners,who have all of those rights.

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