Answer with Explanation:
A "corporation" refers to a large company or a large entity that is being owned by "shareholders." It may also refer to a group of companies that stand or act as a single entity.
One characteristic of a corporation is its "unlimited life." This is contrary to sole proprietorship and partnerships which have a limited life. This means that a corporation will not end, expire or die in the event that one of the shareholders dies. It will only end its life under intentional decisions to dissolve the corporation or if it goes bankrupt.
In case of bankruptcy, the shareholders are also not forced to repay the debts of the corporation. Instead, the assets of the corporation will be targeted by the creditors.
So, this explains the answer.
