What is a characteristic of a corporation?

A significant characteristic of a corporation is that it is owned by multiple shareholders who are treated as a single legal entity. This means that even though individual shareholders own portions of the corporation, the corporation itself is regarded as a separate legal "person" under the law. This structure allows for limited liability, meaning that the personal assets of shareholders are protected from the corporation's debts and legal obligations.

The concept of a corporation being a separate legal entity also provides it with various rights and responsibilities in the eyes of the law, such as the ability to enter into contracts, sue, and be sued, which distinguishes it from other business forms like sole proprietorships or partnerships where ownership is not as defined. This characteristic allows for the possibility of raising capital through the sale of stock to many investors, thereby facilitating growth and investment that might not be possible in other business structures.