Question

Which of the following is an association of persons formed for carrying out business activities
and has a legal status independent of its members?
(a) Joint Stock company (b) Private company
(c) Public company (d) Cooperative society

Answer 1

Answer:

option D is the correct answer

Answer 2

The association of persons formed for carrying out business activities  and has a legal status independent of its members is (c) Public Company

Explanation:

• If a company is a separate legal entity, it enjoys many of the same legal protections as an individual. It can enter deals, sue and be sued, and possess assets, property etc.
• Unlike a sole proprietorship or partnership, a corporation's legal identity and those of its members are distinct.
• The company can have its own legal personality as soon as it is established and incorporated.
• Consequently, none of the company's members will be accountable for any of the company's commercial operations.
• Thus, out of the following options,  it is only option (c) Public Company that can exist independently and enjoy its separate legal status.