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What is a Company?

27. What is a Company?

1. Legal entity organized and operated for a collective, public or social benefit, in contrast with an entity that operates as a business aiming to generate a profit for its owners.
2. Business organization which is owned and carried on jointly by the members of the Hindu Undivided Family.
3. Unincorporated business with only one owner who pays personal income tax on profits earned.
4. A legal entity formed by a group of individuals to engage in and operate a business.

Answer: D) A legal entity formed by a group of individuals to engage in and operate a business

Explanation:

A company is a legal entity formed by a group of individuals to engage in and operate a business, commercial or industrial enterprise. A company may be organized in various ways for tax and financial liability purposes depending on the corporate law of its jurisdiction.