Question

Mention the advantages of Joint stock companies.

Answer 1

A joint-stock company is a business entity regarded as an artificial person where the funds for running the business is raised through issuing shares to public and the shares of the company's stock can be bought and sold by shareholders.

The advantages of a joint stock company are :-

1. Separate legal entity

2. Abundant Capital

3. More Managerial efficiency

4. Optimum utilization of resources

5. Limited liability of the shareholders.