Practicing Success

Target Exam

CUET

Subject

Entrepreneurship

Chapter

Entrepreneurial Planning

Question:
A company has an independent status different from its members. Identify this feature  of a company.
Options:
Artificial person
Common seal
Separate legal entity
Limited liability
Correct Answer:
Separate legal entity
Explanation:
Separate legal entity: A company has an independent status, different from its members. This implies that a company cannot be held liable for the actions of its members and vice-versa. Company has a distinct entity separate from its members.