A company is called an artificial person because _____________.
A
it does not have the shape of a normal man
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B
it cannot be used in the court of law
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C
it is invisible and intangible
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D
it exists only in contemplation of law
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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.