Teddy is a shareholder of a jojnt stock company. What advantages must have been enjoyed by teddy as a shareholder of jointstock company. for nios
Answers
As Teddy is a part of a joint stock company, there are some advantages that Teddy must have been enjoyed. The advantages are provided in the explanation.
Explanation:
Joint stock company is a kind of organizational entity in which the shares of a company can be sold and bought by various shareholders. It is owned by the shareholders who have shares as a certificate of ownership.
As Teddy is a part of a joint stock company, there are some advantages that Teddy must have been enjoyed. The advantages are as follows:
i. Teddy must have been enjoyed the benefit of large amount of capital in the company.
ii. There is an advantage of limited liability in the joint stock company.
iii. Transfer-ability of the shares is feasible and easy from one shareholder to another.
iv. This type of company gives an advantage of ownership democratization.
v. The risk involved in this type of company is diffused risk which is an advantage for Teddy.