PRC-3 · Chapter 2 · Question 26 of 61
A group of investors form 'Pioneer Solutions (Pvt) Ltd'. The company takes out a bank loan to buy an office building. Who legally owns the office building?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) The company itself, Pioneer Solutions (Pvt) Ltd
Explanation
A limited company is a separate legal entity. It has the right to own property, incur debt, and sign contracts in its own name, independent of its shareholders.
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