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Company

A company is ...

Question

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.

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