Legal entity separation from its legal owners and managers with help of state laws is classified as____________?
Correct answer: B. Corporation
- A. Controlled corporate business
- B. Corporation
- C. Limited corporate business
- D. Unlimited corporate business
Explanation
A corporation is a separate legal person created under state law, distinct from its owners and managers. This separation supports limited liability and distinguishes corporations from ordinary unincorporated businesses.
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About Business Finance
Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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