Explain any five limitations of Joint Stock Company.
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Disadvantages of Joint Stock Company are the following
Difficulty in Formation: ADVERTISEMENTS
Reckless Speculation Encouraged: This form of organisation encourages reckless speculation in shares at stock exchanges
Fraudulent Management
Delay in Decision-Making
Monopolistic Power
Excessive Regulation by Law
Conflict of Interests
Lack of Secrecy
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Answer:
Disadvantages of Joint Stock company are:
1)Difficulty in formation: Advertisement
2) Fraudulent Management
3) Delay on decision making
4) Monopolistic powers
5) Excessive regulations by law
Explanation:
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