Why Is It Possible for a Corporation to Enter into Contracts

question 24

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)The state in which the corporation is incorporated provides safeguards against any wrongdoing by the corporation.
• C)Its owners are liable for any obligations it enters into.
• D)It is a legally defined, artificial entity that is separate from its owners.

---

Definitions:

Footer

A section located at the bottom of a page in a document or website, typically containing copyright information, contact details, or relevant links.

Different Odd & Even Pages

A document setup option allowing for distinct header, footer, or page formatting between odd and even numbered pages.

Page Number

A numeric or alphanumeric identifier that is automatically or manually added to documents or pages for organization, reference, and navigation.

Different First Page

A feature in word processing software that allows the first page of a document, such as a title page, to have a different header or footer than the following pages.