Question

Perpetual succession is explained by the concept of entity.

• A. True
• B. False

Answer 1

The correct option is B False

Perpetual succession is the continuation of corporation despite of death, bankruptcy, insanity, change in membership or an exit from the business of any owner or member and along with common seal, is one of the factor explaining a corporation a legal existence as separate from those of its owners. And entity concept states that the transaction must be recorded separately from those of its owners. But the two concept are different.