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Briefly explain the following term: Common seal - Business Studies

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Briefly explain the following term: Common seal

Answer in Brief
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Solution

A company is an artificial entity that is created under the law. Unlike human beings, it cannot sign official documents. This is where the role of a common seal becomes important. A common seal is the official signature of a company that is used by its board of directors in almost all the important official documents. The presence of this seal authenticates the documents, and documents with a common seal can be provided as evidence in a court of law.

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Chapter 2: Forms of Business Organisation - Short Answer Questions [Page 56]

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NCERT Business Studies [English] Class 11
Chapter 2 Forms of Business Organisation
Short Answer Questions | Q 6.2 | Page 56

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