Question

A Joint Stock Company can raise huge capital.

Answer 1

This statement is True.

1. A joint stock company is a voluntary association of individual for profit, having its capital divided into transferable shares, the ownership of which is the condition of membership.
2. A company form of organisation can raise a large amount of capital because of large membership and also because of issue of shares to public.
3. It also in a best possibility to borrow money from financial institution as it enjoys better credit worthiness.
4. Thus, A joint stock company can raise large amount of funds by way of shares, debentures, public deposits, loans and advance from bank and financial institution. This is due to no limit in the membership of public limited company