Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Forms of Business Organisation

Question:

Which form of organisation has the feature of Perpetual succession?

Options:

Partnership

Joint stock company

Sole proprietorship

All of the above

Correct Answer:

Joint stock company

Explanation:

The correct answer is option 2- Joint stock company.

Only company form of organisation has this feature.

A company being a creation of the law, can be brought to an end only by law. It will only cease to exist when a specific procedure for its closure, called winding up, is completed. Members may come and members may go, but the company continues to exist.