Question

A business is experiencing delays in decision-making due to excessive formalities. Identify the disadvantage of a joint stock company being highlighted and suggest a possible solution.

Answer 1

The disadvantage of a joint stock company highlighted here is delay in decision-making. Excessive legal formalities and bureaucratic procedures slowed the process.

Possible solution:

A possible solution is to delegate more authority to professional managers and use current communication and technology tools to simplify procedures and speed up decisions, resulting in increased efficiency in company operations.