Continuity of life refers to whether an entity continues to operate or technically dissolves and ceases to exist in its present form when a change occurs in the ownership structure.

Question

Quizplus · Accepted Answer

Continuity of life refers to the concept that a business or entity continues to exist even if there is a change in ownership structure, such as a transfer of shares, succession planning, or other changes in leadership. This means that the business can continue to operate and retain its legal and financial identity, rather than dissolving or ceasing to exist in its current form.

Continuity of Life Refers to Whether an Entity Continues to Operate