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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. - Commercial Applications

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Question

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.

Options

  • Only I is correct.

  • Only II is correct.

  • Both I and II are correct.

  • Both I and II are wrong.

MCQ
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Solution

Only I is correct.

Explanation:

Statement I is correct because a company is an artificial person, which means it is established by law. It does not have the physical body of a real human being, but it has the same legal rights and duties.

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Chapter 4: Ownership Structures - Joint Stock Company - EXERCISES [Page 52]

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C. B. Gupta Commercial Applications [English] Class 9 ICSE
Chapter 4 Ownership Structures - Joint Stock Company
EXERCISES | Q I. 9. | Page 52
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