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A company faces criticism for taking too long to make decisions due to bureaucratic delays. Which disadvantage of joint stock companies is highlighted here? - Commercial Applications

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Question

A company faces criticism for taking too long to make decisions due to bureaucratic delays. Which disadvantage of joint stock companies is highlighted here?

Options

  • Lack of motivation

  • Delay in decision-making

  • Conflict of interests

  • Unhealthy speculation

MCQ
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Solution

Delay in decision-making

Explanation:

In a joint stock company, decisions must be approved by several levels of management and the board of directors. This lengthy process frequently causes delays in decision-making, reducing efficiency and flexibility.

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Chapter 4: Ownership Structures - Joint Stock Company - EXERCISES [Page 53]

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C. B. Gupta Commercial Applications [English] Class 9 ICSE
Chapter 4 Ownership Structures - Joint Stock Company
EXERCISES | Q I. 17. | Page 53
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