Question

State three characteristics of a company.

Answer 1

Following are the three characteristics of a company:

1. Separate Legal Entity: A company exists independently of its members and can own property, sue, or be sued in its own right.
2. Limited Liability: Shareholder’s liability is limited to the unpaid value of their shares, which protects their personal assets.
3. Perpetual Succession: A company can exist despite the death, insolvency, or retirement of its members.