What type of business is owned by many people but treated as if it were owned by one person under the law?

A corporation is a type of business entity that is created by law as a separate legal entity from its owners. This means that even though a corporation can have many shareholders, it operates as a single entity. Under the law, a corporation can enter into contracts, sue and be sued, and hold assets in its own name, which gives it a distinct advantage in terms of liability protection and resource accumulation.

The structure of a corporation allows for limited liability for its shareholders, meaning that the personal assets of the individuals who own shares in the corporation are generally protected from the corporation's debts and liabilities. This legal treatment enhances the ability of a corporation to raise funds and attract investment, as it provides a clear separation between ownership and management.

In contrast, a partnership involves multiple individuals sharing ownership and responsibilities but does not create a separate legal entity, leading to personal liability. A sole proprietorship is owned and operated by one individual, and a franchise represents a business model that allows individuals to operate a business under the branding of a larger corporation, but it does not create a new legal entity either. Therefore, while all these choices present different ownership and operational structures, the corporation uniquely embodies the legal treatment of being owned by many yet functioning as one entity.