the company is a group of people which are bonded together with a goal to set up a business. Basically, the definition is over but if we go in depth of its meaning we would get to know more about it. Here in the company, a leader is required. This leader guides the whole company, such company which has people at every stage and at every branch.
Under the leader, there are subordinate workers which are in that position on which the leader or the head or the chairman has placed him or her, according to his qualities and weakness.
Company’s characteristics are such that they are defined by its leader only. No one can interpret or decide or can even comment on whatever the characteristics a company does possess. As, all this is a secret stuff off the head of the company but the common characteristics which all the company has; or, which they possess are:
- Separate Legal Entity:-
As discussed earlier, after you entered into a company or has registered as a member among the employer you will have to accept and has to listen to the terms of the company’s leaders and not to those which are running out of that company. A company can make its own laws and norms and everyone within it has to follow them and this is how the separate legal entity characteristic of a company can be justified.
- Perpetual Succession:
The literal meaning of this word is the continuous growth of the company. We have discussed the leader earlier but let’s clarify the concept of the word in a bit better way. A company is not a man or woman, It is a goal. Until the goal exists, the company may exist. There is not age fixed for a company. The company can also run even if it is bankrupt. Leaders change but company’s succession remains unaffected.
- Separate Property:-
No one, even the head or the chairman cannot claim his ownership of the company. The company exists with its own wish and will. Until the goal of the company is not completed till the company is his own owner. It can neither be sold nor can be purchased. This is how the separate property characteristic of the company is justified.
- Separate Management:-
We have till now has discussed two points about the company. They are:- the presence of the supreme head in the company whose rules are needed to be followed within the company (but who is not the real owner of the company) and another one is that it is a separate entity. So, every company has a right to manage his own affairs on his own because whatever the matter would, the company will manage it as per the rules are given by the head or chairman. His commands are needed to be followed and the rules which he has developed is needed to remain in existence in every scenario.