Question 23
Business OrganisationsA joint stock company enjoys perpetual existence because
- A.it is formed by a minimum of seven members.
- B.it is a corporate entity.
- C.its shares are easily transferable.
- D.there is a higher degree of specialization.
Show the answer and explanation
Answer: B (it is a corporate entity.)
Explanation
As a separate legal person, the company continues whatever happens to its members.