What characterizes a corporation as a type of business ownership?

A corporation is characterized primarily by its ability to raise capital through the sale of stocks. This unique feature allows a corporation to gather funds from a broad base of investors, each of whom buys shares of ownership in the company. Selling stocks provides corporations with the ability to finance growth, invest in new projects, or cover operational costs without requiring a single individual to bear the entire financial burden.

Additionally, this method of raising capital also allows corporations to attract investment from a diverse range of shareholders, which can enhance the company's resources and market presence. As a result, the sale of stocks is a key defining characteristic that differentiates a corporation from other types of business ownership, such as sole proprietorships or partnerships, where ownership and funding mechanisms are usually more limited.