Answer:
False. It is called separate legal entity.
Explanation:
In the eye of law, a company is a separate legal entity as it is distinct from its owners (i.e shareholders) , directors, promoters etc and as such is conferred with rights and is also subjected to certain duties and obligations.
It has the right to issue and be sued in any legal transaction it has entered its own name.
As a separate legal entity, it activities and operations must be kept separate from that of the owner and other entities.
