An artificial person created by law is commonly known as which term?

• A. Corporation for Profit
• B. Sole Proprietorship
• C. Partnership
• D. Limited Liability Company

Answer: (A)

A corporation is an artificial person created by law. It exists as a separate legal entity from its owners, can own property, enter contracts, sue and be sued, and its shareholders have limited liability. This is what the term “corporation for profit” refers to—a business entity formed to earn profits and operate as its own legal person. Sole proprietorships and partnerships aren’t separate legal entities in the same way, so the owners may be personally liable, while an LLC is a distinct form with its own rules, but the most direct fit for the description is a corporation for profit.