Which of the following best describes a corporation?

A corporation is best described as a legal entity conducting business with limited liability. This means that a corporation is recognized by law as a separate entity from its owners, which provides shareholders with protection such that their personal assets are not at risk for the debts and liabilities incurred by the corporation. This structure allows for easier capital raising through the sale of stock and also provides continuity, as the corporation can continue to exist independently of its owners’ status.

In contrast, the other options describe different business structures. A business owned by a single individual without liability limits would be classified as a sole proprietorship, which does not offer the same protection to the owner's personal assets. A cooperative involves a group of individuals working for their mutual benefit, but it doesn't fit the characteristics of a corporation. Lastly, a government-funded organization may serve public purposes but does not represent the legal protections and business structure characteristic of a corporation. Understanding these distinctions helps clarify why the definition of a corporation as a separate legal entity with limited liability is accurate.