Question

Statement I: A joint stock company is an association of persons having a separate legal existence, perpetual succession and common seal.

Statement II: Mass production does not require huge capital investment and expert professional management.

Options

• I is only correct.

• II is only correct.

• Both I and II are correct.

• Both I and II are wrong.

Answer 1

I is only correct.

Explanation:

Statement I is correct because a joint stock company is indeed an association of persons. It has a separate legal existence, perpetual succession and a common seal as its official signature.

Statement II is wrong because mass production does require huge capital investment and expert professional management. That is why joint-stock corporations are ideal for mass production.