Question

State with reasons whether the following statement true or false.

A joint stock company can raise huge capital.

Options

• True

• False 

Answer 1

A joint stock company can raise huge capital : True
Explanation: A joint stock company has numerous sources of raising funds. A few of the fund-raising sources include, issuing financial securities (such as shares, debentures and bonds), raising finance from the general public via public deposits and borrowings from banks or other financial institutions. Thus, a joint stock company can raise huge capital.