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Meaning and features of a company

Answer Text:
Companies
Meaning of a company:
-Is a business unit formed by an association of people and registered under the companies act to carry out business with the aim of making profit.
Features of a company:
1.Separate legal entity:
-A company is a distinct legal person from the owners. It can buy, own and sell property.
2.Limited liability:
-Companies debts cannot be extended to properties of the shareholders.
3.They are owned by shareholders
4.The main source of capital for a company is shares.
5.A company is formed for a particular purpose shown in the objectives clause.
6. A company name must end with the word “Limited”