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Briefly explain the following term: Perpetual succession - Business Studies

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Briefly explain the following term: Perpetual succession

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Solution

It implies that a company will continue to exist until and unless it is forced by the law to wind up. This implies that a company, as a separate legal entity, cannot come to an end by itself and will continue to operate forever. It will not cease to exist even in situations such as death, retirement or insolvency of any of its members—that is, a company will continue to operate even if all its members die.

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Chapter 2: Forms of Business Organisation - Short Answer Questions [Page 56]

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NCERT Business Studies [English] Class 11
Chapter 2 Forms of Business Organisation
Short Answer Questions | Q 6.1 | Page 56

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