Which of the following statements is not true about a corporation as a form of business organisation?

Introduction / Context:
Business studies and commerce subjects describe different forms of organisation such as sole proprietorship, partnership and corporation. A corporation is treated as a separate legal entity distinct from its owners or shareholders. This question asks which statement does not correctly describe a corporation, testing understanding of the separate legal personality concept.

Given Data / Assumptions:
- The question presents four statements about a corporation and asks which one is not true.
- The first three statements talk about the corporation being able to sue, own property and enter contracts in its own name.
- The fourth statement claims that the acts of its owners automatically and personally bind the corporation in all cases.
- We assume the learner knows that owners of a corporation are typically shareholders who enjoy limited liability.

Concept / Approach:
A fundamental feature of a corporation is that it is a separate legal person in the eyes of law. It can own assets, incur liabilities, enter contracts and sue or be sued independent of its owners. The shareholders generally have limited liability and are not personally responsible for corporate debts beyond their investment. Therefore, the corporation is not automatically bound by every personal act of its owners; only authorised acts of its officers or agents acting within their authority bind the company.

Step-by-Step Solution:
Step 1: Confirm that a corporation can sue and be sued in its own name, which is a standard property of separate legal personality. Step 2: Confirm that it can buy, own and sell property in its own name, another key corporate feature. Step 3: Confirm that a corporation can enter binding contracts through its authorised representatives and that such contracts are in the corporate name, not necessarily in the names of individual owners. Step 4: Examine the statement that the acts of its owners automatically and personally bind the corporation in all cases. Step 5: Recognise that this contradicts the idea of a separate legal entity and limited liability; owners may influence policy but their personal acts do not always bind the corporation. Step 6: Therefore, identify the last statement as the one that is not true.

Verification / Alternative check:
Company law texts emphasise that a corporation has its own legal identity. They give examples where shareholders are not liable for corporate debts and where corporate acts are valid even when ownership changes. They also describe how only acts performed by directors, officers or agents within their authority bind the corporation. These explanations confirm that the statement about owners acts binding the corporation automatically is incorrect as a general rule.

Why Other Options Are Wrong:
Ability to sue and be sued: This correctly describes a corporation, which can appear in court as a party to legal proceedings.

Owning property: Corporations can own land, buildings, machinery and other assets in their own names, entirely separate from those of shareholders.

Entering contracts: Corporations routinely enter contracts for employment, supply, leasing and financing through authorised signatures.

Common Pitfalls:
Some learners confuse corporations with partnerships, where partners acts may more directly bind the firm. Others misunderstand limited liability and think that owners are always personally responsible for corporate obligations. In reality, the corporation shields owners from personal liability in most circumstances, except in cases of fraud or lifting of the corporate veil. Recognising this separation ensures accurate answers to questions about corporate features.

Final Answer:
The statement that is not true is that the acts of its owners automatically and personally bind the corporation in all cases.