Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting for Shares

Question:

A joint stock company is:

Options:

Artificial legal person

Natural person

General person

None of these

Correct Answer:

Artificial legal person

Explanation:

A company may be viewed as an association of person who contribute money or money’s worth to a common inventory and use it for a common purpose. It is an artificial person having corporate legal entity distinct from its members (shareholders) and has a common seal used for its signature.