When a Corporation Continues to Operate Regardless of Changes in Ownership,this

question 89

Multiple Choice

When a corporation continues to operate regardless of changes in ownership,this is known as:

• A) the right of perpetual succession.
• B) perpetual shares.
• C) perpetual trading.
• D) unlimited succession.

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Definitions:

Continuation

The process of extending or carrying on an activity without interruption.

Undiscounted Sum

The total of all future cash flows associated with an investment or project without adjusting them for their present value.

Discounted

The method of calculating the current value of a future sum of money or series of cash flows using a particular return rate.

Interest Expense

The financial charges a company bears for loaned money across a time frame.