Accountancy Part AAccounting for Shares

“Members may come and go, but the company continues. Even an atom bom…

“Members may come and go, but the company continues. Even an atom bomb can't end a company”.

Which feature of a company is highlighted in the above statement?

Answer & explanation

Correct answer: option 4

The correct answer is Option (4) → Perpetual Succession

NCERT (2026-27 edition):
Features of a Company – “… Perpetual Succession: The company being an artificial person created by law continues to exist irrespective of the changes in its membership. A company can be terminated only through law. The death or insanity or insolvency of any member of the company in no way affects the existence of the company. Members may come and go but the company continues.”