The phrase 'an artificial person created by law' most accurately describes which term?

• A. Nonprofit Organization
• B. Corporation for Profit
• C. Sole Proprietorship
• D. Partnership

Answer: (B)

A corporation is a legal entity created by law that is separate from its owners, which is why it’s often described as an artificial person. This legal personality lets the entity own property, enter contracts, sue and be sued, and continue independent of the individuals who own its shares. That separation from the people behind it is what the phrase is getting at.

Among the terms given, the one that fits this description best is a corporation for profit, because it refers to the standard business form created by law to operate as a distinct, legal entity with a primary goal of earning profits. Nonprofit organizations can also take corporate form, but they’re defined by their nonprofit purpose and tax status rather than the general idea of being an artificial person created by law. Sole proprietorships and partnerships, on the other hand, are not separate legal persons in the same sense; they involve the owners directly and don’t embody the same distinct legal personality.