What is a company?
•Company has owners who are known as shareholders
•Company has a separate legal entity from the owners — meaning that people who own, control and manage it should be separate group of people (Shareholders own the company, Board of Directors control the company, Directors manage the company)
•Shareholders have limited liability –- meaning that the liability that they have to bear when the company goes into debt is up to the purchase price of their shares only
•A company has unlimited life – meaning that the company will not be dissolved when owners die or change