True or False: corporations are not separate legal entities from their owners.

• A. True
• B. Not applicable
• C. False
• D. Sometimes

Answer: (C)

Corporations are separate legal entities from their owners. This means the company itself can own property, enter contracts, sue or be sued, and incur obligations, while shareholders’ liability is generally limited to their investment. So the statement is false—the typical rule is that owners and the corporation are distinct legal entities, though there are rare circumstances (like piercing the corporate veil) where that separation can be challenged.