Ace the GACE 2026 – Transform Your Teaching Dreams into Reality!

A corporation is indeed generally owned by shareholders, who invest in the company and hold shares representing their ownership stake. This characteristic is fundamental to the structure of corporations, distinguishing them from sole proprietorships and partnerships where ownership may be individual or shared among partners.

The other statements do not accurately describe the nature of a corporation. The board of directors typically is not personally liable for the corporation's failures, as the corporate structure limits personal liability. Similarly, shareholders generally enjoy limited liability, meaning they are not personally responsible for the corporation’s debts beyond their investment in shares. Additionally, corporations have the legal status to sue or be sued, allowing them to engage in legal actions as separate legal entities.