Which of the following describes a key feature of a corporation?

A key feature of a corporation is that owners have limited liability for debts. This means that the personal assets of the shareholders are protected in the case of the corporation facing financial difficulties or legal actions. The liabilities and obligations are the responsibility of the corporation itself rather than the individual shareholders. This limitation encourages investment because investors can risk their money in the corporation without the fear of losing their personal assets beyond their investment in the company.

The other options, while relevant to different types of business structures, do not capture this significant feature of a corporation. For instance, corporations typically require extensive legal documentation, including articles of incorporation and corporate bylaws, making them more complex to establish compared to sole proprietorships or partnerships. Corporations also have a formal process for dissolution, which can be more complicated than just ending a sole proprietorship. Lastly, a corporation can have multiple owners (shareholders), and there is no limitation to only having one. This characteristic allows for the raising of capital and sharing of risks.