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CSEET · Business Laws and Management · Elements of Company Law

Match the characteristic of a company in List I with its consequence in List II. List I: (P) Separate legal entity (Q) Perpetual succession (R) Limited liability (S) Common seal/authorised signature List II: (1) Company continues despite death of a member (2) Company can own property in its own name (3) Member's liability confined to unpaid amount on shares (4) Mode of authenticating the company's documents

The correct matching is P-2, Q-1, R-3, S-4. Separate entity allows the company to own property, perpetual succession means it survives a member's death, limited liability restricts a member to the unpaid share amount, and the seal or authorised signature authenticates documents.

  1. AP-2, Q-1, R-3, S-4Correct
  2. BP-1, Q-2, R-3, S-4
  3. CP-2, Q-3, R-1, S-4
  4. DP-4, Q-1, R-2, S-3

Explanation

Separate entity lets the company own property in its name (P-2). Perpetual succession means the death of a member does not end it (Q-1). Limited liability confines liability to unpaid share amount (R-3). The seal or authorised signature authenticates documents (S-4). Other options mismatch these.

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