Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting for Shares

Question:
Company is a ................. association of persons formed by the law.
Options:
Mandatory
Registered
Consideration
Voluntary
Correct Answer:
Voluntary
Explanation:
A Company is a voluntary association of person formed for the purpose of doing some business. A company is a juristic person (in the eyes of law it is a person). The company can sue and it can be sued.