Final answer:
Perpetual liability for a corporation means that the death of one owner does not end the corporation. Unlike partnerships or sole proprietorships, corporations have a separate legal existence and can continue to exist even if one owner leaves or dies.
Step-by-step explanation:
Perpetual liability for a corporation means that the death of one owner does not end the corporation. Unlike partnerships or sole proprietorships, corporations have a separate legal existence. This means that even if one owner dies or leaves the corporation, the corporation can continue to exist and operate.
One important advantage of perpetual liability is that it allows corporations to attract investors and managers who may be more willing to invest in or work for a company that will continue to exist beyond their involvement. It also provides stability and continuity for the corporation, as it can outlive its owners.
An example of a corporation with perpetual liability is Walmart. If one of the owners or shareholders of Walmart were to pass away, the company would still exist and continue its operations.