Question

Write short answers for the following:
Define Joint Stock Company and explain it's features.

Answer 1

Defination : A company or association consisting of individuals organized to conduct a business for gain and having a joint stock of capital represented by shares owned individually by the members and transferable without the consent of the group.

Features of joint stock company :

1. Separate Legal Entity
2. Perpetuity
3. LimitedLiability
4. Number of Members
5. Separation of Ownership from Management
6. Transferability of Shares
7. Rigidity of Objects
8. Financial Resources.