A business owned by shareholders and possessing a certificate of incorporation that gives it a separate legal identity from its owners?

A business owned by shareholders and possessing a certificate of incorporation that gives it a separate legal identity from its owners?

• A. Deed of Partnership
• B. Certificate of Incorporation
• C. Company
• D. Articles of Association

Answer: (C)

Ownership by shareholders and a certificate of incorporation that gives a separate legal identity describe a company. A company is a distinct legal entity from its owners, meaning it can own assets, enter contracts, and sue or be sued in its own name, with liability typically limited to its resources. The certificate of incorporation is the official document that creates this separate legal personality. A deed of partnership, by contrast, relates to a partnership where owners (partners) usually have personal liability and no separate legal identity. Articles of association are the internal rules for how the company is run, not the entity itself. So the description fits a company.

Ownership by shareholders and a certificate of incorporation that gives a separate legal identity describe a company. A company is a distinct legal entity from its owners, meaning it can own assets, enter contracts, and sue or be sued in its own name, with liability typically limited to its resources. The certificate of incorporation is the official document that creates this separate legal personality. A deed of partnership, by contrast, relates to a partnership where owners (partners) usually have personal liability and no separate legal identity. Articles of association are the internal rules for how the company is run, not the entity itself. So the description fits a company.