Why Is It Possible for a Corporation to Enter into Contracts

question 81

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 state in which a 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.

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Definitions:

Mason Jars

Glass jars with a sealable metal lid, traditionally used for preserving food, but also popular in crafts and as trendy containers or drinkware.

Bootlegger

An individual who illegally manufactures, sells, or transports alcoholic beverages.

AITP

Association for Information Technology Professionals, a professional group focused on technology management and education.

Computer Clocks

Internal timing devices within a computer that synchronize the operations of its components.