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प्रश्न
Justify the following statement.
There is separation of ownership and management in Joint Stock Company.
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उत्तर
- The shareholders are the owners of the company. The company is managed by the Board of Directors who are elected representatives of the shareholders.
- There is a separation of ownership and management because of the following reasons:
(a) Scattered membership
(b) Large membership
(c) Disinterested shareholder
(d) Heterogeneous members
(e) Separate legal entity. - Thus, ownership is in the hands of shareholders and the management is with the Board of Directors who are paid employees of the company.
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संबंधित प्रश्न
Distinguish between the following:
Partnership Firm and Joint Stock Company.
Justify the following statement.
The ownership and management are separated in Joint Stock Company.
Justify the following statement.
The Joint Stock Company collects huge capital from the public.
State True or False:
Board of Directors manages the business of Joint Stock Company.
Complete the sentence.
Registration of Joint stock company is compulsory according to the Companies Act _______.
Explain the following term/concept:
Joint Stock Company.
Answer in brief.
State any four demerits of Joint Stock Company.
Justify the following statement.
A Joint Stock Company can raise huge capital.
Attempt the following:
Explain the merits of Joint Stock Company.
Attempt the following:
Explain the demerits of Joint Stock Company.
What is the risk to shareholders in a joint stock company?
Which is NOT a merit of a joint stock company?
What is one major demerit of a joint stock company?
Why do joint stock companies enjoy public confidence?
Which of the following is an example of a joint stock company in India?
