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Business Studies

Joint Stock Company

A joint stock...

Question

A joint stock company is a creation of law.

A

True

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B

False

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Solution

The correct option is A
True

True. A joint stock company is a creation of law.

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Q. State whether the following statements are True or False:
(a) A joint stock company is separate legal entity.
(b) A company survives even if all its members die.
(c) A joint stock company is a voluntary association of persons.
(d) A joint stock company is less stable than a partnership.
(e) Registration of a joint stock company is optional.
(f) There can be no conflict of interest in a joint stock company.
(g) A company is an artificial legal person.

State True or False. In a joint stock company, the process of formation is easy and faster as compared to sole proporietorship.

Companies have legal status under law. True or False

Q. A Joint Stock Company is an artificial person created by law.

______ is a prerequisite to creation of a company.

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