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What happens to a company's existence upon registration and issuance of the certificate of incorporation?
  • a)
    The company's existence becomes temporary.
  • b)
    The company ceases to exist.
  • c)
    The company becomes a separate legal entity.
  • d)
    The company becomes a subsidiary.
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
What happens to a company's existence upon registration and issuance o...
Upon registration and issuance of the certificate of incorporation, the company obtains a separate legal existence and becomes a distinct corporate entity. This allows the company to function independently, enter into contracts, and enjoy perpetual succession.
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What happens to a company's existence upon registration and issuance of the certificate of incorporation?a)The company's existence becomes temporary.b)The company ceases to exist.c)The company becomes a separate legal entity.d)The company becomes a subsidiary.Correct answer is option 'C'. Can you explain this answer?
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