What does perpetual succession mean in relation to a company?
Correct answer: A. The company continues despite changes in its members
- A. The company continues despite changes in its members
- B. The company must operate without earning profit
- C. The company can never change its business activity
- D. The company is managed permanently by one director
Explanation
Perpetual succession means that a company's existence is not ended by the death, insolvency, or transfer of shares by its members. The company continues until it is legally dissolved or wound up.
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About Nature and Forms of Business Organisation
Business organisation combines people, capital, materials and entrepreneurship to produce goods or services and earn profit, while also meeting customer and social needs. Coverage includes sole proprietorships, partnerships, companies and cooperatives, with comparisons of ownership, liability, control, profit sharing, continuity and legal status.
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