Multiple choice

Fiction theory is related to which one of the following concepts

  1. Legal Personality

  2. Ownership

  3. Liability

  4. Justice
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A Correct answer
Explanation

The Fiction Theory (also known as Concession Theory) states that the state creates corporations as legal personalities by conceding or granting them recognition as artificial persons. This theory treats corporate personality as a legal fiction created by law, not a natural fact. It's the opposite of the Realist Theory which treats corporations as real human associations.

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