In which scenario would a firm be classified as a corporation?

A firm is classified as a corporation when it has met legal requirements for separate existence. This means that it has gone through a formal process, such as registration with the state or local government, to establish itself as a distinct legal entity separate from its owners. As a corporation, the firm can enter into contracts, sue or be sued, and have its own assets and liabilities. This separation provides benefits such as limited liability for the owners, meaning they are not personally responsible for the corporation's debts beyond their investment in the company.

The other scenarios do not define a corporation. A firm run by an individual typically refers to a sole proprietorship, which is not a separate legal entity. The number of employees, such as having less than 50, does not impact whether a business is classified as a corporation; businesses of any size can become corporations if they fulfill the legal requirements. Lastly, being a non-profit organization does not itself denote a corporation; while many non-profits are incorporated, the term corporation applies broadly beyond just non-profit entities.