Which principle best describes the strong juridical personality of a corporation?

• A. Limited liability rule
• B. Right of succession or continuity of existence
• C. Separate entity theory
• D. Business judgment rule

Answer: (B)

Continuity of existence is what gives a corporation its strong juridical personality. A corporation is a separate legal person, and its life isn’t tied to any individual owner or manager. It can own property, enter contracts, sue and be sued, and continue to exist even as ownership or leadership changes. This enduring identity—perpetual succession—provides stability for long-term agreements and corporate governance. Limited liability speaks to shareholders’ liability, not the nature of the corporation’s personality. The separate entity concept describes the corporation as a distinct legal person, which is related but the enduring continuity is what most strongly embodies its strong juridical personality. The business judgment rule deals with directors’ decisions, not the corporation’s legal personality.