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WAEC Economics 2023 Objective — Question 23

Question 23 of 50 from the West African Examinations Council (WAEC) 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. it is a corporate entity. C. its shares are easily transferable. D. there is a higher degree of specialization.

  • A. it is formed by a minimum of seven members
  • B. it is a corporate entity
  • C. its shares are easily transferableCorrect
  • D. there is a higher degree of specialization

Explanation

The easy transferability of shares of a joint stock company is a key reason it enjoys perpetual/continuous existence even as owners change.

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