Advertisements
Advertisements
Question
Explain the following term/concept:
Joint Stock Company.
Advertisements
Solution
- It is an incorporated association created by law, having an independent legal status, owned by shareholders and managed by the Board of Directors.
- The main motive of the Joint Stock company is the maximisation of profit.
- It works as the principle of “One share one vote”.
- It has to follow the Indian Companies Act, 2013.
APPEARS IN
RELATED QUESTIONS
Distinguish between the following:
Sole Trading concern and Partnership Firm.
Justify the following statement.
Registration of the Joint Stock Company is compulsory.
Justify the following statement.
A Joint Stock Company is an artificial person.
Justify the following statement.
The liability of a shareholder of company is limited.
Justify the following statement.
The Joint Stock Company collects huge capital from the public.
State True or False:
There is a separation of ownership & management in the Joint Stock Company.
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 _______.
Correct the underlined word and rewrite the following sentence.
Registration of Joint Stock Company is not compulsory.
Answer in brief.
State any four demerits of Joint Stock Company.
Justify the following statement.
A Joint Stock Company can raise huge capital.
Justify the following statement.
There is separation of ownership and management in Joint Stock Company.
Attempt the following:
Explain the five features of Joint Stock Company.
Attempt the following:
Explain the merits of Joint Stock Company.
What term is used for the capital that is divided into small parts in a joint stock company?
Who manages the day-to-day activities in a joint stock company?
Why do joint stock companies enjoy public confidence?
