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'A company is formed… (Class 12 Accountancy 2026, Q6b)

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AccountancyCBSE Class 12 · Board exam 2026, set 67/1/1 · 1 mark · MCQ

CBSE Class 12 Accountancy 2026: question 6(b)

Set in the CBSE Class 12 board exam of 2026, paper 67/1/1, section A, question 6(b), for 1 mark. Try it first; the hints and our step-by-step solution are below.

Q6(b) · 1 mark · MCQAccounting for Share Capital

'A company is formed according to the provisions of Company Law' indicates which of the following characteristics of a company ?

  1. (A)Common Seal
  2. (B)Perpetual Succession
  3. (C)Body Corporate
  4. (D)Limited Liability

Source: official question paper from cbse.gov.in (PDF). See it in the full 2026 board paper, set 67/1/1.

Hints

Open one hint at a time and try again before the next.

Hint 1

Which feature is about how a company is created?

Hint 2

Think "artificial person created by law".

Step-by-step solution

Each step shows the marks it earns, as an examiner would award them. Checked by an independent re-solve from the question paper.

  1. A company comes into existence by registration under the Companies Act, which makes it a legal person.

  2. Being created by law is the feature "body corporate". Option (C).

    1 mark

Answer: (C) Body Corporate

Where the marks are

  • Body corporate (1 mark)

Revise the chapter

Practise this chapterBoard-style questions from Accounting for Share Capital, one at a time, marked against the answer key and marking points.Back to the full paper2026 board paper, set 67/1/1: every question, by section.

The question is transcribed from the official paper; figures are described in words. The solution, hints and chapter tag are ours. Spotted an error? Write tosupport@questionbuddy.in.