Advertisements
Advertisements
Question
Justify the following statement.
There is separation of ownership and management in Joint Stock Company.
Advertisements
Solution
- 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.
APPEARS IN
RELATED QUESTIONS
Justify the following statement.
Registration of the Joint Stock Company is compulsory.
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.
The rule for voting in Joint stock company is __________.
Correct the underlined word and rewrite the following sentence.
Registration of Joint Stock Company is not compulsory.
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 five features of Joint Stock Company.
Attempt the following:
Explain the demerits of Joint Stock Company.
Why is a private company more desirable than a public company? Give any two reasons.
Which of the following best describes a joint stock company?
What does ‘perpetual succession’ mean for a joint stock company?
What is one major demerit of a joint stock company?
Why do joint stock companies enjoy public confidence?
