Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Accounting for Shares

Question:

Identify the false statement with regard to a company:

Options:

A company is an artificial person.

Company's shares are generally transferable.

Every member of a company is entitled to take part in its management.

The director of a company is always a shareholder.

Correct Answer:

Every member of a company is entitled to take part in its management.

Explanation:

The correct answer is Option (3) & (4) in NTA Answer Key