Which of the following describes the legal treatment of a corporation?

A corporation is treated as a separate legal entity, meaning that it possesses its own legal rights and responsibilities distinct from those of its owners, often referred to as shareholders. This legal status allows the corporation to enter contracts, sue or be sued, own property, and carry out business activities independently of its shareholders.

This separation is crucial because it protects the personal assets of the shareholders; they are typically not held personally liable for the debts and obligations of the corporation. This characteristic encourages investment in businesses by limiting risk, as individuals can invest in a corporation without exposing their personal finances to the corporation's liabilities.

The other options fail to capture the fundamental nature of a corporation. For instance, defining a corporation as a partnership ignores the distinct legal entity status of corporations, which can have numerous shareholders and limited liability. Claiming that a corporation has no legal rights contradicts the essence of corporate law, as corporations are afforded numerous rights akin to individuals. Lastly, stating that a corporation is limited to one owner misrepresents its structure; corporations can have many shareholders, which is a foundational aspect of corporate existence.