Which of the following is an advantage of a C corporation?

A C corporation's separate legal entity status is a significant advantage as it allows the corporation to own property, enter contracts, and be liable for its debts independently of its owners, the shareholders. This means that shareholders are typically shielded from personal liability for the corporation’s debts, limiting their financial risk to only their investment in the corporation. This structure promotes investment and growth, as individuals can engage in business activities without risking personal assets, which is particularly appealing in cases of unfavorable business outcomes. Additionally, being a separate legal entity allows the corporation to continue existing beyond the involvement of its original owners, thus providing stability and continuity. This status is essential for attracting investors and fostering trust with clients and suppliers.