How does the law treat a corporation?

The law treats a corporation as a single individual, or a legal person, separate from its owners. This concept is known as "corporate personhood." It allows the corporation to enter into contracts, sue and be sued, own assets, and incur liabilities in its own name, independently of the personal finances of its shareholders. This separation provides a level of liability protection to the owners, meaning that their personal assets are typically not at risk if the corporation faces legal issues or financial difficulties.

The distinction of a corporation as a separate entity is crucial for many aspects of business regulation, taxation, and governance. This treatment facilitates the formation of limited liability companies where shareholders are protected, encouraging investment and economic growth. The other options do not accurately reflect this legal status or the fundamental characteristics of a corporation in relation to ownership or structure.