Question

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a business organized as a corporation
terminates when one of its original stockholders dies.
requires that stockholders be personally liable for the debts of the business.
is owned by its stockholders.
is not a separate legal entity in most states.

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Explanation:

To solve this, we analyze each option based on corporate business structure:

• Option 1: Corporations have perpetual existence; a stockholder's death doesn't terminate it. Eliminate.
• Option 2: Stockholders have limited liability, not personal liability for business debts. Eliminate.
• Option 3: A corporation is owned by its stockholders (who hold shares). This is correct.
• Option 4: A corporation is a separate legal entity in most states. Eliminate.

Answer:

C. is owned by its stockholders.