Which statement is true about a business corporation?

A business corporation is indeed a legal structure designed for commercial activity. This distinction is critical because it highlights the corporation's purpose: to engage in business operations, generate profit, and operate within the framework of laws and regulations applicable to businesses. By having a legal structure, a corporation can enter contracts, own property, and be held accountable in legal matters separate from its owners, often referred to as shareholders.

The corporate structure also provides benefits such as limited liability for owners, meaning their personal assets are generally protected from business debts and obligations, which differentiates it from other forms of business ownership where liability may not be limited. Understanding this aspect is fundamental to recognizing why corporations are a common choice for many entrepreneurs and businesses aiming for growth and scalability.