Question

State with reasons, whether the following statement is True or False:
The ownership and management is not separated in a Joint Stock Company.

Answer 1

The ownership and management is not separated in a Joint Stock Company.

(i) The shareholder in the company is large and they are spread all over the country.

(ii) Therefore, the management of the company is done professionally by experts who are the representatives of the shareholders are called the board of Directors.

The separation of ownership and control refers to the phenomenon associated. with publicly held business corporations in which the shareholders (the residual. claimants) possess little or no direct control over management decisions. Reference to the separation of ownership and control, and concern over its.