Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Forms of Business Organisation

Question:

Which of the following acts as an official signature of the company?

Options:

Common seal

Oligarchic majority

Director

Shareholders

Correct Answer:

Common seal

Explanation:

The correct answer is option 1- Common seal.

The company being an artificial person cannot sign its name by itself. Therefore, every company is required to have its own seal which acts as official signature of the company. Any document which does not carry the common seal of the company is not a binding on the company.