Asked by Meredith Murphy on Jun 09, 2024



"In modern business practice, the shareholders of a corporation own that corporation." Explain the accuracy of this statement.

Modern Business Practice

Contemporary methods, strategies, and approaches adopted by businesses to operate efficiently and competitively.

  • Acquire knowledge about the idea that a corporation operates as an autonomous legal entity and its effects on shareholders and directors.

Verified Answer

Kortese Delaney

Jun 12, 2024

Final Answer :
A corporation is a separate legal person. Shareholders have certain rights in relationship to the corporation to control it and have a claim against the assets upon dissolution. In a practical sense, however, this usage is correct.