Answer: A. To protect individual investments
A corporation is a body or organization formed by a union of two or more entities that come together to do business. The principal reason for forming a corporation is to protect individual investments, and this is easily achieved since a corporation is recognized and treated as a single body, both by law and other businesses.
A corporation is seen as a single entity that is separate from each of the individuals that own it, and as such, has the same rights as a single entity. Corporations are created for a specific purpose: to do business, although they can be involved in other activities such as developing projects and so on.
A corporation, unlike single individuals, can generate income from a variety of unlimited sources, and helps to protect its owners: both the losses suffered and profits gathered are shared amongst the owners.