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Business Studies

Merits and Limitations of Joint Stock Company

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Question

Registration of Joint Stock Company is optional.

A

True

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B

False

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Solution

The correct option is A True
It is true that registering the company is optional. One can start the business with other ways also rather than registering like acquiring tax license, service tax registration.

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Q. The Registration of a Joint Stock Company is _______.

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.

Q. Registration of partnership is not compulsory but registration of company is __________.

Q. Registration of a company is ________.

Q. Registration is ________ for every company.

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