BCL – L1 – SA – Q62 – Alternative Forms

Meaning of the doctrine of corporate personality.

Question

Which of the following is the meaning of “doctrine of corporate personality”?

A A company is a sole trader

B A company is a Partnerships

C A company is a legal person.

D A company means its owners

E None of these

Answer

Explanation:
The correct answer is C because the doctrine of corporate personality establishes that a company is a separate legal person, distinct from its owners, capable of owning assets and incurring liabilities. A company is not a sole trader (A), partnership (B), or its owners (D), and E is incorrect as C is accurate.

Tags: Company Law, Corporate Personality, Legal Person
Level: Level 1

Topic: Alternative forms and constitutions of business organisations

Uploader: Samuel Duah