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WAEC Commerce 2003 Question 27

Question 27

Business Units

A public limited liability company can enter into contracts because it

  1. A.has many employees
  2. B.has shareholders
  3. C.is a legal entity
  4. D.is allowed to take out debentures
Show the answer and explanation

Answer: C (is a legal entity)

Explanation

As a separate legal person a company can make contracts, sue and be sued in its own name.