Which statement about the rights of corporations is correct?

The statement that corporations can sue or be sued in their own name is correct because one of the fundamental characteristics of a corporation is that it is recognized as a separate legal entity from its owners (shareholders). This separate legal status allows a corporation to initiate legal actions against others and also to defend itself in court. Therefore, the corporation itself has the ability to enter into contracts, own assets, and be accountable legally, just like an individual.

This legal distinction provides essential protections and rights, enabling the corporation to function independently and to engage in commerce, which is crucial for its operations and relationships with stakeholders. The ability to sue and be sued is a core component of a corporation's rights as it ensures that it can protect its interests and pursue legal remedies when necessary.