Target Exam

CUET

Subject

Accountancy

Chapter

Accounting for Shares

Question:
A company is a ............... person created by law having separate legal entitiy.
Options:
Real
Artificial
Registered
None of these
Correct Answer:
Artificial
Explanation:
According to Chief Justice Marshal, “a company is a person, artificial, invisible, intangible and existing only in the eyes of law. Being a mere creation of law, it possesses only those properties which the charter of its creation confers upon it, either expressly or as incidental to its very existence”.