Question

Fill in the blanks with suitable word(s) in the following statements:
i. The liability of members of a joint stock company is limited to the
extent of the ____________.
ii. A joint stock company form of business organization is managed by
____________.
iii. The cost of formation of a company is very ____________.
iv. Indian Oil Corporation and ONGC are the example of ____________.
v. The risk of loss in a company is spread over a large number of
_____________

Answer 1

A joint stock company is a huge entity that comes under the jurisdiction of company laws, having a common seal instead of a signature. The ownership, management and control of the joint stock company are in different hands. The joint stock company is either a private limited company or a public limited company. The ownership of the company is with the shareholders.

Following are the answers to the fill in the blanks:

1. Value of shares owned by them

2.  Board of Directors

3. High/Expensive

4. Public Limited Companies

5. Shareholders