Section 1 1) A corporation is a business that is legally separate and distinct from its (2pts) owners True False 2) The ownership of a proprietorship is divided into shares of stock owned by its stockholders (2pts) True False 3) The basic type of stock issued to owners is called common stock (2pts) True False 4) A liability is a legal obligation to repay the amount borrowed according to the terms of the borrowing agreement. (2pts) True False