Which term describes a company authorized to act as a single legal entity?

A corporation is a distinct legal entity that is separate from its owners, with its own rights and obligations. This separation allows corporations to enter into contracts, sue and be sued, and own assets in their own name. The structure of a corporation provides limited liability to its shareholders, meaning their personal assets are protected from the corporation’s debts and liabilities. This legal recognition enables corporations to exist independently of the individuals who own and manage them.

In contrast, other options like partnerships or joint ventures do not provide the same level of legal separation between the entity and its owners. In a partnership, all partners typically share liability for the debts and obligations of the partnership. A limited partnership does introduce some level of liability limitation for certain partners, but it still does not create a separate legal entity like a corporation. A joint venture involves two or more parties coming together to undertake a specific project or business activity, but it does not establish a distinct entity with the same permanence and legal standing as a corporation.