The Form Of Business Ownership Described As An Artificial Person Is A
1 Artificial Legal Person A company is a legal entity that has been created by the statues of law. This means that a company is treated as a separate person from its participants.
Describe the ownership operation and size of a sole proprietorship.
The form of business ownership described as an artificial person is a. Shareholding directorship and nominee director. A form of business owned by two or more persons. A business organized as a separate legal entity artificial person under the corporation law with ownership divided into transferable shares of stocks.
It is owned by at least one shareholder and managed by at least one director. Use your key advisors to. Corporation forms must be used if there are more than 2 of the 4 corporate characteristics as described above.
While there are a few sole proprietorships that are large and have numerous employees most are of a small size. For example a corporation can enter into binding contracts borrow money own property pay taxes and initiate legal actions such as lawsuits in its. A person in the eyes of law is called an artificial person.
Long Questions for NCERT Business Studies Solutions Class 11 Chapter 2. Entity that is separate and distinct from its owners. None of the choices.
The incorporation of a company is an artificial entity recognized by the law as a legal person that exists independently with rights and liability. It does not take birth like natural person but comes into existence through law. Limited partnership business ownership involves a combination of the above types of sole proprietorship and General Partnership.
Partner who is not publicly known but is actively managing. A sole proprietorship is owned by one person and usually operated by that same one person. Artificial personality juridical personality or juristic personality is the characteristic of a non-living entity regarded by law to have the status of personhood.
However it is bound by law as it is created as a legal entity. Like a natural person it can do certain things like own property in its name enter into a contract borrow and lend money sue or be sued etc. Ownership of a business can be easily transferred in an OPC by transferring shares.
A juridical or artificial person Latin. Partner who is publicly known but not actively managing. Artificial person created as legal entity by the authority of federal or state law.
In many ways a corporation is like an artificial person. A company is a creation of law and is sometimes called an artificial person. A company or business entity is referred to as artificial person as unlike human beings it cannot walk sleep breathe and eat.
A company being an artificial person can acquire own enjoy and alienate property in its name. In summary deciding the form of ownership that best suits your business venture should be given careful consideration. But a company enjoys all the rights of a natural person.
In an OPC the ownership can be transferred by altering the provision wrt. An entity which has a separate legal entity in the eyes of law is called artificial person. It can sue or get sued by other firms.
There are multiple people listed as owners in limited partnership but the business decision making authority lies with either one or few of the partners and rest all only contribute the funds and share the profits. A joint stock company and a cooperative society are artificial persons. D Artificial person.
A person who invests money in a business but has no management responsibility or liability for losses beyond the amount he or she invested in the partnership corporation an artificial person created by law with most of the legal rights of a real person including the rights to start and operate a business to buy or sell property to borrow money to sue or be sued and to enter into binding contracts. It has also been granted certain rights by the law which it enjoys through its board of directors. Association of two or more to do business as co-owners for profit.
It has right to enter into contracts and own property. Taxed as partnership in most cases. It can legally engage in virtually any business activity a natural person can pursue.
Also juristic person has a legal name and has certain rights protections privileges responsibilities and liabilities in law similar to those of a natural person.
