Question

The joint stock company can raise huge capital Justify

Answer 1

Answer:

A few of the fund-raising sources include, issuing financial securities (such as shares, debentures and bonds), raising finance from the general public via public deposits and borrowings from banks or other financial institutions. Thus, a joint stock company can raise huge capital.

Explanation:

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Answer 2

Explanation:

1) A joint stock company is a voluntary association of persons who generally contribute capital. They carry on a particular type of business, which is established by law.

2) Person of any caste, religion can become the member of joint stock company. There is no restriction on transfer of shares or number of shares purchased by one person.

3) A joint stock company issues shares to the public. The face value of shares is comparatively low. So it can collect huge amount of capital.

4) It can also accept deposits from public and issue debentures to raise funds. Therefore, it also plays important role in the economic development of the country.

Therefore, the joint stock company can raise huge capital.

According to marking pattern this length of answer is sufficient to score full Marks in justify.