Which of the following best describes a corporation?

A corporation is best described as an entity that is owned by multiple stockholders who have limited liability. This means that the stockholders’ financial responsibility for the company's debts is limited to their investment in the corporation, protecting their personal assets from being used to settle the corporation's liabilities. This structure encourages investment, as individuals can buy shares without fear of losing more than their initial investment if the business encounters financial trouble.

The other definitions do not accurately encompass the nature of a corporation. A corporation is distinctly not owned by a single person, which rules out the first option. It is also not merely a business partnership, as partnerships involve personal liability and typically fewer formalities. Lastly, corporations must adhere to various government regulations, including those concerning formation, operation, and reporting, which contradicts the notion of being operated without government oversight. Thus, the characterization of a corporation as owned by stockholders with limited liability captures its essence and legal structure effectively.