Company AccountsQ-4 | Introduction to Company AccountsQuestion 5217 of 112
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Since company has existence independent of its members, it continues to be in existence despite the death, insolvency or change of members. [Nov. 2019, 2 Marks]; [MTP Jan. 2025]

Options

A
B
C
D
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Correct Answer

✅ Option — Correct Option

All Options:

  • A
  • B
  • C
  • D

Detailed Solution & Explanation

True: A company has a separate legal entity i.e. its existence is independent of its members. The company is consequently able to enjoy perpetual succession and continues in existence irrespective of death/insolvency/change of members, until it is wound up by law.

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