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Question
Explain any two characteristics of a company.
Solution
1. Separate Legal Entity:
Under Incorporation, a company becomes a separate legal entity as compared to its members. The company is distinct and different from its members.
2. Limited Liability:
The liability of the members of the company is limited to contribution to the assets of the company up to the face value of shares held by him. A member is liable to pay only the uncalled money due on shares held by him.
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