A Company is called an artificial person because _________.
A. It does not have the shape of a natural person
B. It cannot be used in the court of law
C. It is invisible and intangible
D. It exists only in contemplation of law
Answer: Option C
Solution(By Examveda Team)
A Company is called an artificial person because It is invisible and intangible. Corporation is an artificial being, invisible, intangible and existing only in contemplation of law. It has neither a mind nor a body of its own.This Question Belongs to Commerce >> Business And Commerce
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It exists only in contemplation of law
Correct option is D)
The incorporation of a company is an artificial entity recognized by the law as a legal person that exists independently with rights and liability. This means that a company is treated as a separate person from its participants. It is owned by at least one shareholder and managed by at least one director.