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WAEC Financial Accounting 2021 Question 15

Question 15

Company Accounts

Company as a legal entity means that it

  1. A.must always have a company lawyer
  2. B.can sue and be sued
  3. C.must settle disputes among shareholders in court.
  4. D.should prepare accounts approved by a lawyer.
Show the answer and explanation

Answer: B (can sue and be sued)

Explanation

A company is a separate legal person, so it can sue and be sued in its own name.