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WAEC Commerce 1997 Question 26

Question 26

Business Units

When a Public Limited Company is incorporated it means that

  1. A.it is entitled to commence business
  2. B.It has been given certificate of trading
  3. C.it has a legal existence
  4. D.its shares cannot be transferred
  5. E.it has to issue a statutory declaration.
Show the answer and explanation

Answer: C (it has a legal existence)

Explanation

Incorporation creates the company as a legal person; it needs a trading certificate before it can start business.