state the advantages of joint stock company
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Following are the advantages:
1. Limited Liability : Liability of members of Joint Stock Company is limited to the extent of shares held by them. Hence shareholders assets will not be on stake. This feature attracts large number of investors to invest in the company.
2. Perpetual Existence : A company is an artificial legal person created by law which has its own independent legal status. Its existence is not affected by the death or insolvency of its members.
3. Large Scale Operation : The capacity of the corporate organizations to raise the funds is comparatively high which provide capital for large scale operations. Hence opens the scope for expansion.
4. Raising of Funds : It is easy to raise a large amount of funds as the number of persons contributing to the capital are more.
5. Social Benefit : It offers employment to a large number of people. It facilitates promotion of various ancillary industries. It also donates money for education, community service.
1. Limited Liability : Liability of members of Joint Stock Company is limited to the extent of shares held by them. Hence shareholders assets will not be on stake. This feature attracts large number of investors to invest in the company.
2. Perpetual Existence : A company is an artificial legal person created by law which has its own independent legal status. Its existence is not affected by the death or insolvency of its members.
3. Large Scale Operation : The capacity of the corporate organizations to raise the funds is comparatively high which provide capital for large scale operations. Hence opens the scope for expansion.
4. Raising of Funds : It is easy to raise a large amount of funds as the number of persons contributing to the capital are more.
5. Social Benefit : It offers employment to a large number of people. It facilitates promotion of various ancillary industries. It also donates money for education, community service.
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