a corporation is an economic entity that unlike a person can

a corporation is an economic entity that, unlike a person, cannot own a property and borrow money in its own name.....True or False?

Solution

It is FALSE that a corporation is an economic entity that, unlike a person, cannot own a property and borrow money in its own name.

Corporation is a a business entity created by filing a form (known in most states as the articles of incorporation) with the appropriate state agency, paying the state\'s incorporation fees. and meeting other requirements. (The specifics vary among states.) Unlike a sole proprietorship or a partnership, a corporation is considered to be a legal entity that is separate and distinct from its owners. In many ways, a corporation is like an artificial person. It can legally engage in virtually any business activity a natural person can pursue. For example, a corporation can enter into binding contracts, borrow money, own property, pay taxes, and initiate legal actions (such as lawsuits) in its own name. It can even be a partner in a partnership or an owner of another corporation. Because of a corporation\'s status as a separate legal entity, the owners of a corporation have limited liability--meaning they aren\'t personally responsible for the debts and obligations of their company.

As a legal entity, a corporation has most of the rights and privileges of a person. Corporations may be classified in a variety of ways. Two common classifications are by purpose and by ownership. In other words, A corporation is a legal entity, created by law, enjoys most of the rights and privileges of a person. May be classified by purpose and by ownership. Classification by ownership differentiates publicly held or privately held corporations. A publicly held corporation is regularly traded on a national securities market and may have thousands of stockholders. A privately held corporation, often referred to as a closely held corporation, does not offer its stock for sale to the general public and may have only a few stockholders.