A close corporation is a legal entity which implies that it is not liable to pay for obligations and can acquire assets in its own name.

Question: A close corporation is a legal entity which implies that it is not liable to pay for obligations and can acquire assets in its own name.

A close corporation indeed operates as a separate legal entity, which means it can own assets, incur liabilities, and conduct business in its own name. However, it's important to clarify that while a close corporation has its own legal identity, it is not immune from all obligations. Shareholders are generally protected from personal liability for the debts and obligations of the corporation, but the corporation itself is liable for its own debts. This type of business structure is designed to allow a small group of people to operate with the legal protections of a corporation while maintaining flexibility in management and decision-making. It's also worth noting that the rules and benefits of a close corporation can vary by jurisdiction, and some regions may have specific requirements or limitations for this type of entity.

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