How to Define Perpetuity

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In business terms, perpetuity is defined as the period of time over which someone owns an asset and produces income from that asset. Learn more about owning something in perpetuity with information from a certified public accountant in this free video on business and accounting terms.

Part of the Video Series: Business & Accounting Terms
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Video Transcript

Alright, let's define perpetuity. As it implies, it means forever. In the business context, perpetuity might mean the period over which someone owns an asset such as land can produce income from that land. One, once you own a piece of land, you own it in full forever until you decide to sell it. For all of that time, which might be forever, you are entitled to the productive value of that land in the form of rents or crops or whatever that land can produce.


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