company

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company Group of people who agree to work together as a firm or business. The legal responsibility of running a company rests with its board of directors which, if the business has raised finance by selling shares in the company, has to account to its shareholders. In a private company, the directors sell shares to whomever they please (sometimes the only shareholders are the directors). The shares of a public company can be bought and sold by anyone through a stock exchange. In a public limited company (plc), the legal liability of its shareholders is limited to the value of their shares. See also corporation

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