A corporation is best defined as?

• A. A group of individuals owning and sharing profits informally.
• B. A form of business organization owned by a single individual.
• C. A company or group of people authorized to act as a single entity (legally a person) and recognized as such in law.
• D. An organization formed by a cooperative.

Answer: (C)

A corporation is defined by its status as a separate legal entity from its owners. This means the organization can own property, enter contracts, sue and be sued in its own name, and continue independently of who owns it. It’s created by law and typically governed by a board of directors and officers, with the ability to raise capital by issuing stock. The description that portrays a company or group of people authorized to act as a single entity (legally a person) and recognized as such in law best captures this distinct legal status. Other descriptions fit partnerships, sole proprietorships, or cooperatives, which do not have the same formal legal personhood and continuity.