- 1 Marks
Question
A company is regarded in law as
A. Corporate aggregate
B. Corporate personality
C. Corporate trustee
D. Corporate proprietorship
E. Corporate municipality
Answer
B. Corporate personality
Explanation:
A company is regarded as a separate legal entity under the concept of “corporate personality.” This means that the company is legally distinct from its shareholders, directors, and employees, and can own property, enter contracts, sue or be sued in its own name. This concept is fundamental in corporate law, allowing businesses to operate as individual entities, separate from the personal liabilities of the people involved.
- Tags: Company Law, Corporate Personality, Legal Entities
- Level: Level 1
- Topic: Company Law
- Series: NOV 2014
- Uploader: Dotse