Question

Which of the following is benefit from Incorporation of a Company?

• A. Loss of Privacy
• B. Possibility of Frauds
• C. Greater Public Accountability
• D. Independent Legal Entity

Answer 1

The correct option is D Independent Legal Entity

Separate Legal Entity:

Under Company law, a company becomes a separate legal entity as compared to its members. The company is distinct and different from its members in law. It has its own seal and its own name, its assets and liabilities are separate and distinct from those of its members. It is capable of owning property, incurring debt, and borrowing money, employing people, having a bank account, entering into contracts and suing and being sued separately.