The following are the features of a Company:(A) Separate Legal Entity(B) Unlimited Liability(C) Perpetual Succession(D) Common SealChoose the correct answer from the options given below:
- A(A), (B) and (D) only
- B(A), (C) and (D) only
- C(A), (B), (C) and (D)
- D(B), (C) and (D) only
Solution & Step-by-step Explanation
A joint-stock company is characterized by a separate legal entity status (independent from shareholders), perpetual succession (members may come and go, but the company goes on forever), and a common seal (acts as its official signature).Unlike a sole proprietorship or standard partnership, a company features limited liability for its members (limited to the unpaid face value of their shares). Therefore, (B) is false, making (A), (C), and (D) the true features.