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NABTEB Economics 2023 Objective — Question 23

Question 23 of 50 from the National Business and Technical Examinations Board (NABTEB) Economics 2023 Objective paper, with the correct answer and a full explanation.

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A joint stock company enjoys perpetual existence because A. it is formed by a minimum of seven Members B. its shares are easily transferable C. it's a corporate entity D. there is a higher degree of specialization

  • A. it is formed by a minimum of seven Members
  • B. its shares are easily transferable
  • C. it's a corporate entityCorrect
  • D. there is a higher degree of specialization

Explanation

A joint stock company is a corporate (legal) entity separate from its owners, so it enjoys continuity/perpetual existence even when shareholders or management change.

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