Because corporations are legal entities separate from their shareholders, ________

A) corporations and shareholders share liability for corporate actions.
B) corporate officers are responsible for corporate actions.
C) the corporation assumes liability for corporate actions.
D) the corporation, shareholders, and the board of directors must share in corporate liability.
E) the corporation cannot be assessed liability unless a court assess liability to it.

Question

Alivia Cameron · Accepted Answer

Final Answer : C, Explanation :  The corporation assumes liability for corporate actions because it is recognized as a separate legal entity from its shareholders, meaning it is responsible for its own debts and legal responsibilities.

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