About Joint Stock Company

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

  • Shoulder
  • Hip
  • Ankle
  • Both A & B

2. Maximum number of members in Public Limited company

  • No limit
  • 100
  • 50
  • 200

3. Which of the following is an Artificial Person

  • Company
  • Firm
  • Human
  • HUF

4. Stocks issued by companies with LOTS of stock.

  • Defensive Stocks
  • Large Cap Stocks
  • Small Cap Stocks
  • Penny Stocks

5. Stocks that tend to be fine, even when markets are bad.

  • Defensive Stocks
  • Large Cap Stocks
  • Small Cap Stocks
  • Penny Stocks

6. Stocks issued by companies expected to succeed.

  • Growth Stocks
  • Income Stocks
  • Blue Chip Stocks
  • Cyclical Stocks

7. Stocks that typically reflect market conditions are...

  • Growth Stocks
  • Income Stocks
  • Blue Chip Stocks
  • Cyclical Stocks

8. Liability od Share holder is

  • Unlimited
  • Limited
  • Is decided at the time of winding Up
  • None of these

9. People who wanted to reform the Anglican Church

  • Separatists
  • Puritans
  • Indentured Servant
  • Charter

10. Economy where mother country establishes colonies as a source of raw materials and markets.

  • Joint Stock Company
  • Salutary Neglect
  • Mercantilism
  • Colony

11. A laborer who agrees to work with no pay for a period of time in exchange for passage to America.

  • Indentured Servant
  • Colony
  • Burgesses
  • Puritans

12. Rules and regulations for internal Management are given in

  • AoA
  • MoA
  • Prospectus
  • Government rules

13. Which company needs to list its shares in stock exchanges

  • Public company
  • Private company
  • Government company
  • International company

14. The Legal Status Of the A Joint Stock Company Under the Law

  • A recognised enterprise
  • Profit sharing association
  • An artificial Person
  • Place to spend money

15. The following is NOT one of the 3 Joint Classifications..

  • Cartilaginous
  • Cartilage
  • Fibrous
  • Synovial

16. What is the differences between stocks and bonds?

  • They are both investments.
  • A stock is what corn grows on, and a bond gets you out of jail.
  • Stock represents ownership, and bonds represents your word.
  • A stock represents ownership, and bonds represents a loan.

17. What is Blue-chip stock?

  • A safe investment that generally attracts conservative investors
  • Blue corn chip in the grocery store.
  • Poker chips.
  • Blue potato chips.

18. How do you invest in stocks.

  • Buy it online.
  • You have to have a stock broker.
  • Buy it from someone.
  • You have to buy more then 12 shares.

19. What is a Stock

  • Car
  • Animals
  • the capital raised by a business or corporation through the issue and subscription of shares,
  • Used in cooking

20. The joints that allow the most movement are called

  • Fixed
  • Fibrous
  • Cartilaginous
  • Synovial

21. A new settlement controlled by a parent country

  • Mercantilism
  • Salutary Neglect
  • Joint Stock Company
  • Colony

22. Whichc of the following company can not invite people to invest in their shares ?

  • Partnership
  • Public Limited
  • Private Limited
  • Non of these

23. Minimum number of members in Private company

  • 7
  • 10
  • 2
  • 1

24. Which of the following company need to compulsory issue the Prospectus ?

  • OPC
  • Private Company
  • Public Company
  • All of the above

25. Minimum paid up capital in Public company

  • 1 Lakh
  • 5 Lakhs
  • 10 Lakhs
  • 15 Lakhs

26. How many representative OPC can have

  • 1
  • 2
  • 3
  • 4

27. Liability of owner is limited in

  • OPC
  • Partnership
  • Joint Stock company
  • Both a and c

28. Shares are freely transferable in case of Private company

  • True
  • False
  • Partially True
  • Partilly False

29. Management of Joint stock company is done by BOard of Directors elected by Shareholders.

  • True
  • False
  • Partially True
  • Partially False

30. Governing law for Joint Stock company

  • Hindu succession Act
  • Indian Companies Act
  • Partnership Act
  • Indian co-operative society Act

31. Which of the following is feature of Joint Stock Company?

  • One man control
  • Two or more person
  • Service Motive
  • Voluntary Association

32. One person company is mandatory to register.

  • True
  • False
  • Partially True
  • Partially False

33. Members of Joint stock company are called?

  • Partners
  • Shareholders
  • Directors
  • Members

34. A Private company can be started by _____________________ members

  • 2
  • 5
  • 1
  • None of these

35. Joint Stock Company can

  • Limited sources
  • Moderate Resources
  • Large resources
  • None of these

36. Private Company can start the work after getting

  • Certificate of Incorporation
  • Certificate of Commencement of Business
  • Issuing Share capital
  • Soon after signing the agreement

37. The Shares Of the company can be transferred

  • With the permission of the company
  • Consent of Board Of Directors
  • On discretion of Shareholders
  • After a fixed period of time it has to be transfered

38. __________members can form a public limited company

  • 7
  • 10
  • 2
  • 5

39. In Jpimt Stock Company the risk is distributed among the share holders

  • True
  • False

40. Select one Disadvantage Of Joint Stock Company

  • Perpetual Existance
  • Transferability Of Shares
  • Delay In Decision Making
  • Large Expansion

41. Minimum paid up capital of Private Company is

  • Minimum of 1 Lakh
  • Minimum of 2 Lakhs
  • Minimum Of 3 lakhs
  • None of these

42. The one who undertakes to form a company taking steps to start a company is _______________

  • Promoter
  • None of these

43. A Joint stock Company is regestered under

  • Statutory Act
  • Companies Act
  • Chartered Act
  • Partnership Act

44. Share holders and the company are

  • Not related to each other
  • Seperate
  • Both are Same
  • None of these

45. Gives the owner the right to organize settlements in an area.

  • Indentured Servant
  • Burgesses
  • Salutary Neglect
  • Charter

46. Protestants who wanted to break away from the Anglican Church to found their own churches.

  • Indentured Servants
  • Joint Stock Company
  • Puritans
  • Separatists

47. Far western edges of colonies that was "back" of the real country along the coast.

  • Joint Stock Company
  • Burgesses
  • Backcountry
  • Mercantilism

48. Elected representatives to an assembly

  • Joint Stock Company
  • Burgesses
  • Separatists
  • Puritans

49. Relaxed enforcement on trade laws imposed on colonies

  • Burgesses
  • Joint Stock Company
  • Charter
  • Salutary Neglect

50. Investors buy shares in a company for a share in their profits

  • Indentured Servant
  • Charter
  • Joint Stock Company
  • Backcountry

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