Explanation:

- Under Section 5 of the Transfer of Property Act, "living person" includes both actual living human beings and legal entities such as companies.

- Option 1, True: "Living person" does include companies according to the legal interpretation of the Act.

- Option 2, False: This option is incorrect because companies are considered legal persons.

- Option 3, Company is not living person: Incorrect in legal terms, as companies are treated as legal entities akin to living persons for certain legal purposes.

- Option 4, Company cannot transfer its assets: Incorrect, since companies can indeed transfer their assets as legal entities.