Business Studies, asked by 108harikeshz, 9 months ago

Explain, why the joint stock company form of business organisation is advisable
to undertake huge and risky projects.

Answers

Answered by jefferson7
0

Explain, why the joint stock company form of business organisation is advisable

to undertake huge and risky projects.

Answer:

Explanation:

The chief advantage of joint stock companies is that all the members have limited liability. The liability of all the members is just limited to the unpaid amount of their shares. All shares of a joint stock company can be transferred.

A huge and risky project can fail and this may result in bankruptcy for the members.The limited liability safeguards the members  against  bankruptcy .

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