Questions: What is a defining aspect of corporations?

The answer is: They have a legal existence separate from their members.

Explanation for each option:

1. They have a legal existence separate from their members.

   • This is the defining aspect of corporations. A corporation is a legal entity that is distinct from its owners (shareholders). This means that the corporation itself can own property, enter into contracts, sue and be sued, and is responsible for its own debts and obligations. This separation provides limited liability protection to the shareholders, meaning they are not personally liable for the corporation's debts.

2. They stifle competition by controlling the market for their products.

   • While some corporations may engage in practices that stifle competition, this is not a defining characteristic of all corporations. Antitrust laws exist to prevent monopolistic practices and promote fair competition. Therefore, this statement is more about the behavior of certain corporations rather than a fundamental aspect of what a corporation is.

3. They enrich their shareholders and their upper-level executives.

   • Although many corporations aim to generate profits for their shareholders and may offer substantial compensation to their executives, this is not a defining characteristic of a corporation. The primary defining feature is the legal separation between the corporation and its members. The goal of enriching shareholders and executives is a common objective but not a fundamental aspect of the corporate structure itself.