Podcast
Play an AI-generated podcast conversation about this lesson
Download our mobile app to listen on the go
Get App
Questions and Answers
What is the origin of the term 'company'?
What is the origin of the term 'company'?
- Derived from the Spanish words 'compania' meaning association and 'panaderia' meaning bakery
- Derived from the Latin words 'com' meaning with/together and 'panis' meaning bread (correct)
- Derived from the Greek words 'co' meaning common and 'pan' meaning all
- Derived from the French words 'compagnie' meaning group and 'pain' meaning pain
What distinguishes a company from a partnership firm?
What distinguishes a company from a partnership firm?
- A company has more members than a partnership firm
- A company's members contribute money, while a partnership firm's members contribute goods or services
- A company is an incorporated association created by law, while a partnership firm is not (correct)
- A company always deals with larger amounts of capital than a partnership firm
What denotes the capital of a company?
What denotes the capital of a company?
- The number of shareholders in the company
- The total assets of the company
- The annual revenue generated by the company
- The common stock contributed in money (correct)
How is a company formed?
How is a company formed?
Signup and view all the answers
What can dissolve a company?
What can dissolve a company?
Signup and view all the answers
Flashcards are hidden until you start studying
Study Notes
Origins and Characteristics of a Company
- Originated from the Latin word 'compania', meaning 'companion' or 'association'
- Refers to a group of people united for a common goal, typically for business purposes
Key Distinctions from a Partnership Firm
- A company is a separate legal entity from its owners, with limited liability
- Partners in a partnership firm have unlimited personal liability
Capital of a Company
- Denoted by its share capital, which is divided into shares of a fixed amount
- Each share represents a unit of ownership in the company
Formation of a Company
- Formed by incorporating with the relevant government agency, such as the Securities and Exchange Commission (SEC)
- Requires a memorandum of association, articles of association, and other legal documents
Dissolution of a Company
- Can be dissolved voluntarily by its shareholders or involuntarily by a court
- May be dissolved due to bankruptcy, insolvency, or other legal reasons
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
