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Which of the following statement is false
- a)A company is legal entity distinct from its owner
- b)Company is not affected by the death of its member
- c)A company can buy its own share
- d)Company is managed by all the members
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
Which of the following statement is falsea)A company is legal entity d...
The Statement given as ‘Company is managed by all the members’ is not correct because it is not mandatory for all the members to run the company.
Most Upvoted Answer
Which of the following statement is falsea)A company is legal entity d...
Last option is false because a company is managed by the board of directors who are elected by the shareholders of the company..
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Which of the following statement is falsea)A company is legal entity d...
False Statement: Company is managed by all the members.
Definition of a Company:
A company is a legal entity formed by a group of individuals to engage in business activities. It is recognized as a separate legal entity from its owners or shareholders.
The management of a company is typically divided into two categories:
1. Board of Directors:
The board of directors consists of individuals who are elected or appointed by the shareholders of the company. They are responsible for making strategic decisions, setting policies, and overseeing the overall operations of the company. The board of directors is usually made up of a group of experienced professionals who possess the necessary skills and knowledge to guide the company towards its objectives.
2. Executive Management:
The executive management of a company is responsible for the day-to-day operations and implementation of the policies set by the board of directors. This includes functions such as finance, operations, marketing, human resources, and other key departments within the company. The executive management team is typically led by the CEO (Chief Executive Officer) or Managing Director, who reports to the board of directors.
Shareholders are individuals or entities that own shares of the company. They invest in the company by purchasing shares and become partial owners. Shareholders have certain rights, such as voting at general meetings, receiving dividends, and participating in decision-making processes.
However, it is important to note that shareholders are not directly involved in the day-to-day management of the company. They appoint the board of directors and hold the power to elect or remove directors, but they do not manage the company themselves. The management of the company is delegated to the board of directors and the executive management team.
In conclusion, the statement that a company is managed by all the members is false. The management of a company is entrusted to the board of directors and the executive management team. Shareholders, although they have certain rights and powers, do not directly manage the company's operations.
Explanation:
Definition of a Company:
A company is a legal entity formed by a group of individuals to engage in business activities. It is recognized as a separate legal entity from its owners or shareholders.
Management of a Company:
The management of a company is typically divided into two categories:
1. Board of Directors:
The board of directors consists of individuals who are elected or appointed by the shareholders of the company. They are responsible for making strategic decisions, setting policies, and overseeing the overall operations of the company. The board of directors is usually made up of a group of experienced professionals who possess the necessary skills and knowledge to guide the company towards its objectives.
2. Executive Management:
The executive management of a company is responsible for the day-to-day operations and implementation of the policies set by the board of directors. This includes functions such as finance, operations, marketing, human resources, and other key departments within the company. The executive management team is typically led by the CEO (Chief Executive Officer) or Managing Director, who reports to the board of directors.
Role of Shareholders:
Shareholders are individuals or entities that own shares of the company. They invest in the company by purchasing shares and become partial owners. Shareholders have certain rights, such as voting at general meetings, receiving dividends, and participating in decision-making processes.
However, it is important to note that shareholders are not directly involved in the day-to-day management of the company. They appoint the board of directors and hold the power to elect or remove directors, but they do not manage the company themselves. The management of the company is delegated to the board of directors and the executive management team.
Conclusion:
In conclusion, the statement that a company is managed by all the members is false. The management of a company is entrusted to the board of directors and the executive management team. Shareholders, although they have certain rights and powers, do not directly manage the company's operations.
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Which of the following statement is falsea)A company is legal entity distinct from its ownerb)Company is not affected by the death of its memberc)A company can buy its own shared)Company is managed by all the membersCorrect answer is option 'D'. Can you explain this answer? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Which of the following statement is falsea)A company is legal entity distinct from its ownerb)Company is not affected by the death of its memberc)A company can buy its own shared)Company is managed by all the membersCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following statement is falsea)A company is legal entity distinct from its ownerb)Company is not affected by the death of its memberc)A company can buy its own shared)Company is managed by all the membersCorrect answer is option 'D'. Can you explain this answer?.
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