Question

state six merits and six demerits of a joint stock company ​

Answer 1

Advantages of a Joint Stock Company:

1. Large Capital

2. Vast Scope of Expansion

3. Limited Liability

4. Permanent Existence

5. Transferability of Shares

6. Democratization of Ownership

7. Diffused Risk

8. Organized Intelligence

9. Tax Relief

10. Social Advantage

Disadvantages of Joint Stock Company:

1. Difficulty in Formation

2. Reckless Speculation Encouraged

3. Fraudulent Management

4. Delay in Decision-Making

5. Monopolistic Powers

6. Excessive Regulation by Law

7. Conflict of Interests

8. Lack of Secrecy

9. Bureaucratic Approach