Question

What is a company?

Answer 1

A company is a form of business organisation created under the Companies Act. It is a legal entity that exists separately from its members. A company’s capital is divided into shares, and investors are referred to as shareholders. Their liability is limited to the unpaid value of the shares they hold. A firm has perpetual succession, which means that its existence is unaffected by the death, insolvency, or retirement of members. It is managed by directors.