The corporation is an entity separate and distinct from its owners.

TrueFalse

True. A corporation is a legal entity separate and distinct from its owners. Corporations enjoy most of the responsibilities and rights that an individual possesses. That is to say that a corporation has the right loan and borrow money, enter into contracts, sue and be sued, hire employees, own assets and pay taxes. The most important aspect of a corporation is limited liability i. e. shareholders have the right to participate in the profits, through dividends and appreciation of stock, but are not held personally liable for the company's debts.