+91-8076753736 support@wiredfaculty.com

Sponsor Area

Forms Of Business Organization

Question

Wired Faculty App

Give the merits of Joint Stock Company.

Solution

The joint stock form of business ownership has become very popular in modern business on account of its several advantages :
Limited liability :

Shareholders of a company are liable only to the extent of the face value of shares held by them.
Their private property cannot be attached to pay the debts of the company.
Thus the risk is limited and known.

Large financial resources :

This form of ownership enables the collection of huge financial resources.
The capital of a company is divided into shares of smaller denominations, so that people with small means can also buy them.

Continuity :

A company enjoys uninterrupted business life.
As a corporate body, it continues to exist even if all its members die or desert it.

Transferability of shares :

A member of a public limited company can freely transfer his shares without the consent of other members.

Some More Questions From Forms of Business Organization Chapter

What do you understand by a Private Company?

What do you understand by a Public Company?

Under what circumstances, is a partnership form of business organisation suitable ?

Write a short note on 'implied agency', one of the important characteristics of partnership and also true test of partnership.

Would you say that the sole proprietorship involves a lengthy and expensive procedure for its registration?

Explain whether the liability of a sole proprietorship is limited to the extent of his share in business.

Only the Karta has unlimited liability in HUF. Explain.

Define 'Partner by Holding Out'.

Explain how the company is an artificial person.

Discuss whether a company's existence is affected by the death of a member.

Mock Test Series

Mock Test Series

NCERT Sample Papers

Entrance Exams Preparation