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Explain the term Company

Explain the term Company in reference to Accounting?

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Company: Company is as well organization of big number of shareholders whose purpose is to earn the maximum return on their investment and to maximize the worth of their shares. Such persons do not participate in the trade of business. All work is completed by management and other professional employees. Subsequent to checking the performance of company accounts that has been made on basis of all-purpose accepted accounting principles, board of directors issue dividend. The market value of share is decided by demand and supply of shares and stocks in the capital market.

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