What defines a corporation in terms of business management?

A corporation is defined as a legal entity that is separate from its owners and is granted specific rights and responsibilities under the law. This separation allows a group of individuals, often referred to as shareholders or members, to operate the business collectively while limiting their personal liability for the corporation's debts and obligations.

The correct answer identifies that a group of people is specifically designated to run the business on behalf of the corporation. This group is typically composed of directors and officers who manage the day-to-day operations and make strategic decisions. This structure is designed to facilitate organization, accountability, and legal protection. The corporation, as an entity, can enter contracts, sue, and be sued in its own name, which reinforces the significance of this management framework.

The other options do not accurately reflect the nature of a corporation. While a partnership consists of individuals working together, it does not have the same legal standing as a corporation. Individuals working independently would refer to sole proprietorships rather than a corporate structure. Additionally, a simple description of a group owning a business lacks the nuance of corporate governance and legal responsibilities that define how corporations function.