Describe A Joint-Stock Company.. In simple words, in joint stock company capital is contributed by large number of persons known as shareholders. The outstanding advantage is that it allows vast mobilization of capital which otherwise is not possible to arrange.
Joint Stock Company Features, Advantages, Disadvantages from www.toppr.com
Secondary, the company offers the protection of limited liability to the investors. A company made up of a group of shareholders. Carrying limited liability, and having a perpetual succession.
It Has Entirely Different Organizational Structure From Sole Proprietorship And Partnership.
We can say that the joint stock company is a voluntary association of individuals who contribute money or money’s worth for a common purpose, nobody can enter this business without his/her interest. All the shareholders own a certain amount of stock in the company, which is represented by their shares. First of all, it enjoys the advantage of increased capital.
Joint Stock Company Is The Third Major Form Of Business Organization.
Tap card to see definition 👆. It is an association of individuals for the purpose of earning profit. In simple words, in joint stock company capital is contributed by large number of persons known as shareholders.
Shareholders Of Joint Stock Company Have Limited Liability I.e Liability Limited By Guarantee Or Shares.
The outstanding advantage is that it allows vast mobilization of capital which otherwise is not possible to arrange. Organizational structure from sole proprietorship and partnership. *a type of business structure used by some colonial explorers to raise money for their expeditions.
Legally, It Is An Artificial Person And Having A Distinctive Name And A Common Seal.
Company whose stock is owned jointly by the shareholders. There are two advantages of joint stock company. A joint stock company suffers from the following weaknesses:
A Company May Be Defined As An Artificial Person Recognized By Law, With A Distinctive Name, A Common Seal, A Common Capital Comprising A Transferable Share Of Fixed Value;
A joint stock company is a voluntary association formed for the purpose of carrying on some business. It has a capital divided into a number of shares, of which each member possesses one or more shares and which are transferable by its owners. Whereas a partnership or a sole proprietor, it has no such legal existence apart from the person involved in it.
