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Forms Of Business Organization
Question
Explain how the company is an artificial person.
Solution
- A company is the creation of law and exists in the eyes of the law only. It is invisible and intangible.
- It exists independent of its members. Like natural persons, a company can own property, incur debts, borrow money, enter into contracts, sue and be sued but unlike them, it cannot breathe, eat, run, talk and so on.
- It is, therefore, called an artificial person.
Some More Questions From Forms of Business Organization Chapter
What is the meaning of a Joint Hindu Family business.
Can a minor become a member of Joint Hindu Family?
What is the meaning of Partnership organization?
Can a Partnership firm have a minor partner ?
Define partnership deed.
What do you understand by co-operative society?
Define company.
What do you understand by a Private Company?
What do you understand by a Public Company?
Under what circumstances, is a partnership form of business organisation suitable ?
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Mock Test Series
Mock Test Series