To put it another way, the contemporary corporation has its roots in the joint-stock company. A joint-stock corporation is a firm that is owned by its shareholders, each of whom owns a share based on the quantity of stock acquired.
Joint-stock firms are formed to fund projects that are too costly for an individual or for a government to finance. In a joint-stock business, the shareholders are hoping to get a piece of the profits
Features of Joint Stock Company
- A joint-stock company is a corporation owned by its shareholders, who can buy and sell shares among themselves.
- Joint-stock firms are the forerunners of today's corporations, however, there are certain legal distinctions.
- Because a joint-stock company was not formed in the past, its shareholders were exposed to unlimited liability for the firm's debts.
- In the United States, shareholders' liability is limited to the face value of their shares during the incorporation procedure.
Transferability of Shares in a Joint Stock Company
A joint-stock company's shares are transferrable. The shares of a public joint-stock corporation are exchanged on regulated stock markets. Privatized joint-stock company stock shares can be transferred between shareholders, however, this is usually restricted to family members or close friends only..
Advantages of Joint Stock Company
Instead of depending on a single investor, joint-stock corporations may generate a substantial amount of capital by issuing shares. This made them a viable investment instrument for colonial ventures that were too costly for a single banker to fund. Furthermore, the concept of tradeable shares increased liquidity by allowing investors to enjoy gains without having to wait for the endeavor to finish.
Following are some of the multiple choice questions on the Joint Stock Company with answers that will help the students in developing their knowledge.
Joint Stock Company MCQ
1. Examples of a Ball & Socket Joint are found in the
2. Maximum number of members in Public Limited company
3. Which of the following is an Artificial Person
4. Stocks issued by companies with LOTS of stock.
5. Stocks that tend to be fine, even when markets are bad.
6. Stocks issued by companies expected to succeed.
7. Stocks that typically reflect market conditions are...
8. Liability od Share holder is
9. People who wanted to reform the Anglican Church
10. Economy where mother country establishes colonies as a source of raw materials and markets.
11. A laborer who agrees to work with no pay for a period of time in exchange for passage to America.
12. Rules and regulations for internal Management are given in
13. Which company needs to list its shares in stock exchanges
14. The Legal Status Of the A Joint Stock Company Under the Law
15. The following is NOT one of the 3 Joint Classifications..
16. What is the differences between stocks and bonds?
17. What is Blue-chip stock?
18. How do you invest in stocks.
20. The joints that allow the most movement are called
21. A new settlement controlled by a parent country
22. Whichc of the following company can not invite people to invest in their shares ?
23. Minimum number of members in Private company
24. Which of the following company need to compulsory issue the Prospectus ?
25. Minimum paid up capital in Public company
26. How many representative OPC can have
27. Liability of owner is limited in
28. Shares are freely transferable in case of Private company
29. Management of Joint stock company is done by BOard of Directors elected by Shareholders.
30. Governing law for Joint Stock company
31. Which of the following is feature of Joint Stock Company?
32. One person company is mandatory to register.
33. Members of Joint stock company are called?
34. A Private company can be started by _____________________ members
35. Joint Stock Company can
36. Private Company can start the work after getting
37. The Shares Of the company can be transferred
38. __________members can form a public limited company
39. In Jpimt Stock Company the risk is distributed among the share holders
40. Select one Disadvantage Of Joint Stock Company
41. Minimum paid up capital of Private Company is
42. The one who undertakes to form a company taking steps to start a company is _______________
43. A Joint stock Company is regestered under
44. Share holders and the company are
45. Gives the owner the right to organize settlements in an area.
46. Protestants who wanted to break away from the Anglican Church to found their own churches.
47. Far western edges of colonies that was "back" of the real country along the coast.
48. Elected representatives to an assembly
49. Relaxed enforcement on trade laws imposed on colonies
50. Investors buy shares in a company for a share in their profits
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