A
corporation is a separate entity where the owners are called stockholders. Its
legal characteristics are as follows. First, perpetual life where it can
continue to function even if one stockholder dies. Second, the stockholder can
transfer his shares to another person. Third, the corporation can only offer
its corporate assets to creditors and personal assets of the stockholder is not
part of the corporation. Therefore, the answer is C, which states that
corporation has a legal protection from lawsuits where in fact, a corporation
can sue and be sued.
