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easyMCQCUET Accountancy 2025 13 May Shift 12026CUET Accountancy
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Which of the following is NOT a characteristic of a corporate company structure?

  1. A
    Separate legal entity
  2. B
    Common Seal
  3. C
    Unlimited liability
  4. D
    Perpetual succession

Solution & Step-by-step Explanation

A joint-stock company features corporate characteristics including a Separate legal entity, Perpetual succession, and a Common Seal. However, one of its primary defining advantages is Limited liability (where shareholders are only liable up to the unpaid value of their held shares). Unlimited liability is characteristic of sole proprietorships or standard partnerships, not limited companies.

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Which of the following is NOT a characteristic of a corporate company structure?
A
Separate legal entity
B
Common Seal
C
Unlimited liability
D
Perpetual succession

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