Commercial Applications
Statement I : A company is an artificial person created by law having no physical body of a natural human being.
Statement II : A company can't exist in the contemplation of law.
- Only I is correct
- Only II is correct
- Both I and II are correct
- Both I and II are wrong
Answer
Only I is correct
Reason — Statement I is correct because a company is an artificial person created by law having no physical body of a natural human being. Statement II is wrong because a company actually exists only in the contemplation of law. It is competent to enter into contracts and own property in its own name through its authorised representatives.
Related Questions
A joint stock company is a …………… association of certain persons formed to carry out a particular purpose in common.
- voluntary
- corporate
- legal
- liable
Assertion (A): Transferability of shares makes public companies more attractive to investors.
Reasoning (R): Public companies allow shareholders to transfer shares without restrictions, providing liquidity to their investments.
- Both A and R are true, and R is the correct explanation of A.
- Both A and R are true, but R is not the correct explanation of A.
- A is true, but R is false.
- A is false, but R is true.
The merit of a joint company is
- Continuity of Existence
- Capital Formation
- Limited Liability
- All of these
Statement I : A company enjoys a good reputation and prestige in the business world.
Statement II : The membership of a public company is large and its ownership is generally diffused.
- Only I is correct
- Only II is correct
- Both I and II are correct
- Both I and II are wrong