Paper 2 · Forms of Enterprise
State the term for a company's ability to continue in existence regardless of the death or withdrawal of any individual owner.
Model answer
perpetual succession
Also accepted: continuity of existence, perpetual existence
Explanation: Because the company is a legal person in its own right, shares may change hands and members may die without the company itself being affected. A partnership has no such continuity: it is dissolved on the death or retirement of a partner unless the agreement provides otherwise.
Derived from ZIMSEC Business Enterprise Skills Paper 2, Specimen Paper, Q1