हिंदी

State whether the following statement is True or False. A company is an artificial person.

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प्रश्न

State whether the following statement is True or False.

A company is an artificial person.

State whether the following statement is true.

A company is an artificial person.

सत्य या असत्य
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उत्तर

This statement is true.

Explanation:

Under accounting rules, a company is considered an artificial person because it has a separate legal identity from its owners, known as the Business Entity Principle. This means all financial transactions are recorded from the company’s perspective, not the owner’s personal view. Because the company acts as an independent person, it can own assets, take loans, and enter into contracts under its own name. Consequently, the money invested by the owner is treated as a liability (Capital) that the company owes back to them.
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Formation of a Company
  क्या इस प्रश्न या उत्तर में कोई त्रुटि है?
अध्याय 3: Formation of a company - Exercise Q.1 [पृष्ठ ४५]

APPEARS IN

बालभारती Secretarial Practice [English] Standard 11 Maharashtra State Board
अध्याय 3 Formation of a company
Exercise Q.1 | Q 4.01 | पृष्ठ ४५
एनसीईआरटी Accountancy Company Accounts and Analysis of Financial Statements [English] Class 12
अध्याय 1 Accounting for Share Capital
Intext questions | Q (a) | पृष्ठ ७

संबंधित प्रश्न

Choose the correct option for the following
Minimum number of members to form a public company is


Multiple Choice Question:

A proposed name of the Company is considered undesirable if


True/False Answer Question:

Statement in lieu of prospectus can be filed by a public company going for a public issue.


True/False Answer Question:

'Articles of association' is the main document of a company.


Discuss the stages of the formation of a company.


Select the correct answer from the options given below and rewrite the statement:
A director must have a ________ to be appointed as a director of a company 


Match the pairs.

Group ‘A’ Group ‘B’
a) Minimum 7 members 1. Persons who conceive the idea of setting up a company.
b) DIN 2. Public company
c) Preliminary contracts 3. Promoters
d) Fiduciary duties towards the company. 4. Eight Digit alphanumeric number.
e) CIN 5. Private company
  6. Unique number assigned to each Director.
  7. ROC.
  8. A 21 digit alphanumeric code number.
  9. One-Person Company
  10. Contracts entered by Promoters with third parties.

Write a word or a term or a phrase which can substitute the following statement.

Persons who undertake the necessary steps to set up a company.


Write a word or a term or a phrase which can substitute the following statement.

Term which refers to contracts entered into by Promoters with third parties on behalf of the proposed company;


State whether the following statement is True or False.

Promoters can make secret profits while setting up a company.


State whether the following statement is True or False.

DSC is needed by Directors when they have to sign documents for e-filing.


State whether the following statement is True or False.

Every Director has to quote his DIN while giving his consent to be a Director of a company.


State whether the following statement is True or False.

ROC issues CIN only to certain companies.


State whether the following statement is True or False.

All companies need Certificate of Incorporation.


State whether the following statement is True or False.

All companies need Certificate of Commencement of business.


Select the correct option form the given option:

Group A

Group B

CIN

_______

Select the correct option form the given option:

Group A

Group B

RUN is used for

_______

Study the following case/situation and express your opinion.

Mr. Ram, Mr. Sam, and Mr. Tom who are partners have come together to convert their business into a company. They have finalized all the details about the business they want to do, capital needed, etc. However, they do not know how to proceed with the legal formalities. Hence they appoint Mr. Shah who is a Practicing Company Secretary to help them prepare documents needed for incorporating the proposed company.

  1. Can Mr. Ram, Mr. Sam, and Mr. Tom convert their partnership firm into a company?
  2. Name 2 most important documents needed to incorporate a company.
  3. Will Mr. Shah be considered as a Promoter of the Company? Why?

Answer in brief.

State the contents of Certificate of Incorporation


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