Features and Kinds of Companies

Which of the following is not a characteristic of a company?

• Separate legal entity

• Unlimited liability

• Perpetual succession

• Artificial person

A company has a separate legal existence. This means:

• Its shareholders are not liable

• It is recognized by law as a separate entity

• It must own land

• It cannot be sued

The liability of members in a company limited by shares is limited to:

• The total assets of the company

• The unpaid amount on shares held by them

• The total capital of the company

• The market value of shares

Which document contains the objectives and scope of operations of a company?

• Memorandum of Association

• Articles of Association

• Prospectus

• Certificate of Incorporation

Perpetual succession means:

• The company can change its name anytime

• The company continues even if members die or resign

• The company can't be dissolved

• None of the above

Which feature distinguishes a company from a partnership firm?

• Mutual agency

• Unlimited liability

• Perpetual succession

• Profit sharing

The term 'artificial person' in relation to a company means:

• The company is run by robots

• The company exists only on paper

• The company is created by law and can act through people

• The company cannot be sued

A company can own property in its own name because it is a:

• Non-trading concern

• Public institution

• Separate legal entity

• Financial intermediary

Which of the following is not a feature of a company?

• Transferability of shares

• Common seal (optional in India now)

• Mutual agency

• Separate ownership and management

The document that governs the internal management of a company is:

• Prospectus

• Articles of Association

• Certificate of Commencement

• Share Certificate