Why is the freedom of operation restricted in a joint stock company?

The management is very slow and does not work. Hence there is a restriction of operations.

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The documents given by the management are wrong hence they need to get them right.

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The company is burdened with numerous restrictions in respect of aspects including audit, voting, filing of reports and preparation of documents and is required to obtain certificates.

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None of the above.

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Solution

The correct option is C
The company is burdened with numerous restrictions in respect of aspects including audit, voting, filing of reports and preparation of documents and is required to obtain certificates.

In a joint-stock company, there are many restrictions. Audit, voting, the filing of reports and preparation of documents and various other certificated from different agencies are required Therefore it reduces the freedom of operations of a company and takes a lot of efforts.

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