wiz-icon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

A company is called an artificial person because _____________.

A
it does not have the shape of a normal man
No worries! We‘ve got your back. Try BYJU‘S free classes today!
B
it cannot be used in the court of law
No worries! We‘ve got your back. Try BYJU‘S free classes today!
C
it is invisible and intangible
No worries! We‘ve got your back. Try BYJU‘S free classes today!
D
it exists only in contemplation of law
Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
Open in App
Solution

The correct option is B it exists only in contemplation of law
The incorporation of a company is an artificial entity recognized by the law as a legal person that exists independently with rights and liability. This means that a company is treated as a separate person from its participants. It is owned by at least one shareholder and managed by at least one director.

flag
Suggest Corrections
thumbs-up
0
similar_icon
Similar questions
View More
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Introduction
ACCOUNTANCY
Watch in App
Join BYJU'S Learning Program
CrossIcon