discuss the reasons of superiority of joint stock company over sole proprietorship and partnership
Answers
Answer:
Sufficient capital is the great advantage of the Joint Stock Company. As Joint Stock Company has perpetual succession, it can raise capital by selling shares in the capital market up to its authorized capital. ... On the other hand, sole proprietor or partnership is not possible to collect huge capital.
Answer:
1. Joint stock companies have greater access to capital reserves than Sole Proprietorships and Partnerships.
2. Joint stock companies tend to appoint professionals and thus have professional management. This is not usually the case in SP and Partnerships.
3. Joint stock companies have continuity. This isn't the case in SP and P.
4. Joint stock companies disclose business information. This results in greater public confidence.
5. Joint stock companies have perpetual succession.