Question

Advantages Of a Company

11 Jan 2018
Answer :
Word Count : 214

The important advantages of company form of ownership are as follows:

1. Limited Liability:

The liability of shareholders, unless and otherwise stated, is limited to the face value of shares held by them or guarantee given by them.

2. Perpetual Existence:

Deaths, insanity, insolvency of shareholders or directors do not affect the company’s existence. A company has a separate legal entity with perpetual succession.

3. Professional Management:

In company business, the management is in the hands of

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