How are corporations viewed in terms of legal entity?

Corporations are viewed as viable entities because they are recognized as separate legal entities distinct from their owners, who are often referred to as shareholders. This means that a corporation can enter into contracts, sue and be sued, and own property in its own name. This legal separation provides owners with limited liability, meaning their personal assets are usually protected from the corporation's debts and obligations.

The structure of a corporation allows it to exist independently and continue its operations even if the ownership changes. This characteristic is crucial for raising capital, as it can issue shares to investors without impacting the personal liability of its owners. Additionally, corporations must adhere to specific regulations and governance practices, giving them a defined operational framework that reinforces their status as viable business entities.

Thus, the recognition of corporations as separate legal entities is fundamental to the way they function within the legal and economic landscape.