Question

Below are given certain statement. Put ‘M’ in the box given at the end of the
sentence, if it is the merit and ‘L’ if it is limitation of joint stock company.
(a) The liability of the members of joint stock company is limited.
(b) The shares of the public limited company can be traded easily in the stock
exchange.
(c) A number of legal formalities have to be complied with in the formation
of joint stock company.
(d) The shareholders holding majority of shares take all decisions of the
company.
(e) A company can spend a lot of money on research and development for
improved process of production, designing and innovating new products

Answer 1

Answer -

(c) A number of legal formalities have to be complied with in the formation

of joint stock company