Question

Define Joint Stock Company. Explain its merits and demerits.

Answer 1

Answer:

As per the question

Joint Stock Company :

A company whose shares can be bought and sold by shareholders.

A joint company is a voluntary association of individuals for profit, having its capital divided int shares , the ownership of which is the condition of membership

Merits of Joint stock company :

* Accumulation of large resources

* Limited  Liability

* Continuity in existence

* Efficient management

* Social Benefits

* Transfer ability of shares

Demerits of Joint stock company :

* Complexity Information

* Lack of control

* Double taxation

* Lack of secrecy

* Lack of personal interest

* Credit Limitations