What distinguishes private incorporated companies from their owners?

Private incorporated companies are distinguished from their owners primarily by being separate legal entities. This means that the company itself has its own legal identity, which is distinct from that of its shareholders or owners. As a result, the company can enter contracts, own assets, incur liabilities, and can be sued or sue in its own name. This separation provides various advantages, such as limited liability, which protects the owners' personal assets from the company’s debts and obligations.

The other options present points that either do not hold true for private incorporated companies or are not relevant to the distinction between such companies and their owners. For example, private incorporated companies do not operate solely based on owner decisions; they are governed by a board or management team that acts in the company’s best interest. While they are subject to certain reporting requirements, not all private companies are required to publish their financial statements publicly to the same extent as public companies. Additionally, while taxes are an important aspect of corporate finance, the specific tax rates can vary and are not a defining feature that distinguishes private incorporated companies from their owners.