Question

Explain the importance of joint stock company.

Answer 1

1. A Joint Stock Company has access to a large amount of capital that is contributed to the company because of the shares that are issued.
2. The liability of the Joint Stock Company Holders is limited because of the shares that are held by them. The holders are not responsible for debts or losses faced by the company.
3. The company is managed by the Directors which are elected by the shareholders.

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