Question

You were running your business in partnership, but now you have formed a joint stock company. What difference did you notice in respect of
(a) legal status,
(b) liability, and
(c) finance

Answer 1

Answer:

Liability

Explanation:

Partnership the disadvantage is unlimited liability but in company it is limited liability

Answer 2

Answer:

The simplest way to describe a joint stock company is that it is a business organisation that is owned jointly by all its shareholders. All the shareholders own a certain amount of stock in the company, which is represented by their shares.

Professor Haney defines it as “a voluntary association of persons for profit, having the capital divided into some transferable shares, and the ownership of such shares is the condition of membership of the company.” Studying the features of a joint stock company will clarify its structure.