Merits of Company,Demerits of Company

khushal By khushal, 20th Oct 2014 | Follow this author | RSS Feed
Posted in Wikinut>Business>Accounting & Finance

The important merits of a company are as follows
1 A company has huge capital fund
2 The liability of the share holders are limited to the face value of share.
3 Company has a separate legal entity.

Merits of Company,Demerits of Company

The important merits of a company are as follows
1 A company has huge capital fund
2 The liability of the share holders are limited to the face value of share.
3 Company has a separate legal entity.
4 A company has flexible nature according to capital production etc.
5 Company is operated by expert management.
6 The risk distributed over a large number of persons.
7 Company is formed by the provisions of companies act 1956

On the basis of the above definitions it can be concluded that, a company is an invisible artificial person whose existence is legally constituted. It can be concluded that a company is an invisible artificial mentioned in the charters. Which is essential for its existence.

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i am working of business department and i am perfect in business

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author avatar Fern Mc Costigan
21st Oct 2014 (#)

Interesting piece!

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author avatar Fern Mc Costigan
21st Oct 2014 (#)

Interesting piece!

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