BUSINESS ADMINISTRATION
ENTREPRENEURIAL DEVELOPMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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it does not have the shape of a natural person.
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. it cannot be used in the court of law.
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. it is invisible and intangible.
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it exists only in contemplation of law.Answer:
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Detailed explanation-1: -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.
Detailed explanation-2: -Artificial person: A Company is an artificial person created by law. It is not a human being but it acts through human beings. It is considered as a legal person which can enter into contracts, possess properties in its own name, sue and can be sued by others etc.
Detailed explanation-3: -In other words, an artificial person is a non-human legal entity that is not a single natural person but an organization recognized by law as a fictitious person.
Detailed explanation-4: -It is true that joint stock company is an artificial person created by law. Company has a separate legal entity and have an existence in the eyes of law.
Detailed explanation-5: -An Artificial person is an entity that is recognized by the law as a Legal Person i.e. an entity holding legal rights and duties distinct from the individuals whom comprise it. For example: A registered company is a person in the sense that it can sue or be sued, as well hold property etc. in it’s own name.