What is a major characteristic of a corporation?

A major characteristic of a corporation is that it is recognized as a separate legal entity from its owners. This distinction allows the corporation to enter into contracts, sue and be sued, and own property independently of its shareholders. This characteristic provides significant advantages, such as limited liability for the owners (shareholders), meaning that they are typically not personally responsible for the debts and liabilities of the corporation beyond their investment in it.

In contrast, the other options present attributes that do not accurately describe the nature of a corporation. For instance, owners of a corporation do not have unlimited liability, as their liability is generally limited to their investment in the company. A corporation is also not managed by a sole owner; instead, it is governed by a board of directors and has a more complex management structure. Additionally, corporations face more regulatory requirements compared to sole proprietorships, such as formalities related to incorporation, governance, and regulatory filings. Thus, the classification of a corporation as a separate legal entity is key to understanding its legal and operational framework.