Question

Mr . Aman wants to set up a business organisation . He has two main expectations from the business organisation - (i) Limited Liability and (ii) Continuity .
What form of business organisation is suitable for Mr. Aman ? Give reasons in support of your answer .

Answer 1

Company form of organisation
Reasons :
Limited Liability : The liabililty of the members is limited to the face value of the shares held by them .
They are not personally liable to the debts of the company .
(ii) Perpetual succession : Being distinct from the members , the death , insolvency or retirement of its members does not affect the life of the company .