Jayant intends to start a business in the form of a company. But he has no idea about the company. Guide him about the following with reference to a company:
Perpetual succession
Common seal
Artificial person
Liability
Perpetual succession
Common seal
Artificial person
Liability
Solution and Explanation
1. Perpetual Succession: A company continues to exist irrespective of changes in ownership or the demise of its members.
2. Common Seal: The common seal is the official signature of the company used for validating documents.
3. Artificial Person: A company is considered a legal entity that can enter contracts, own property, and sue or be sued.
4. Liability: Shareholders have limited liability, meaning they are only responsible for the unpaid value of their shares, protecting personal assets from business debts.
These features make a company a distinct legal entity, providing stability and legal protection to its members.
Top Questions on Private and Public company
- Sudha Publishing House was a Private Limited Company. The publishing business was growing by leaps and bounds. The demand was huge. It required huge investment to set up its branches and printing base all over the country. The board members were thinking to offer shares to the public to meet investment requirements.
On the basis of above case, answer the following questions- CBSE Class X - 2024
- Elements of Business
- Private and Public company
- Which of the broad categories of industries covers oil refinery and sugar mills?
- CBSE Class X - 2024
- Elements of Business
- Private and Public company
- Earthquake comes under which type of risk?
- CBSE Class X - 2024
- Elements of Business
- Private and Public company
Questions Asked in CBSE X exam
- Identify and correct the error in the sentence taken from the article – ‘The Hidden Health Risks of Bread Consumption’:
Health experts worldwide are concerning about the surge in health problems.
Error Correction- CBSE Class X - 2025
- Error Correction
- Describe the historical factors that contributed to the emergence of nationalist tensions in the Balkans.
- CBSE Class X - 2025
- The Rise of Nationalism in Europe
In the adjoining figure, \( AP = 1 \, \text{cm}, \ BP = 2 \, \text{cm}, \ AQ = 1.5 \, \text{cm}, \ AC = 4.5 \, \text{cm} \) Prove that \( \triangle APQ \sim \triangle ABC \).
Hence, find the length of \( PQ \), if \( BC = 3.6 \, \text{cm} \).
- CBSE Class X - 2025
- Triangles
- Imagine you are a part of a 'Self Help Group' (SHG). Explain the working system of the Self Help Group (SHG) to the new member.
- CBSE Class X - 2025
- Money and Credit
In the adjoining figure, $\triangle CAB$ is a right triangle, right angled at A and $AD \perp BC$. Prove that $\triangle ADB \sim \triangle CDA$. Further, if $BC = 10$ cm and $CD = 2$ cm, find the length of AD.
- CBSE Class X - 2025
- Geometry