Discuss the concept, features, advantage | Class 11 Business Studies Chapter Forms of Business Organisation, Forms of Business Organisation NCERT Solutions
Question: Discuss the concept, features, advantages, and limitations of a Joint Stock Company.
Answer:
- Concept: A joint stock company is a business organization where ownership is divided into transferable shares held by shareholders.
- Features:
- Perpetual Succession: It continues regardless of changes in ownership.
- Separate Legal Entity: Operates independently of its shareholders.
- Limited Liability: Shareholders' liability is restricted to their share value.
- Advantages:
- Large Capital Base: Ability to raise funds through share issuance.
- Professional Management: Experienced professionals manage operations.
- Transferability of Shares: Provides liquidity to investors.
- Limitations:
- Complex Formation: Requires adherence to legal procedures.
- Lack of Privacy: Public companies must disclose financial and operational details.
- Management-Ownership Divide: Potential conflicts between shareholders and management.
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Welcome to the NCERT Solutions for Class 11 Business Studies - Chapter . This page offers a step-by-step solution to the specific question from Extra Questions, Question 9: Discuss the concept, features, advantages, and limitations of a Joint Stock Company.....
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