Class 11 Exam > Class 11 Videos > Advantages/Merits of Joint Stock Company-CBSE/NCERT Class 11 Business Studies,HSC,Class 12
Advantages/Merits of Joint Stock Company-CBSE/NCERT Class 11 Business Studies,HSC,Class 12 Video Lecture
FAQs on Advantages/Merits of Joint Stock Company-CBSE/NCERT Class 11 Business Studies,HSC,Class 12 Video Lecture
| 1. What is a joint stock company? |  |
Ans. A joint stock company is a form of business organization where the capital is divided into shares and the liability of the shareholders is limited to the extent of the face value of the shares they hold. It is governed by the Companies Act and can have a large number of shareholders.
| 2. What are the advantages of a joint stock company? | |
Ans. The advantages of a joint stock company are:
1. Limited Liability: Shareholders are liable only to the extent of the face value of their shares, providing them with limited liability protection.
2. Large Capital Base: Joint stock companies can raise a large amount of capital by issuing shares to the public, enabling them to undertake big projects.
3. Transferability of Shares: Shares of a joint stock company can be easily bought and sold in the stock market, providing liquidity to the shareholders.
4. Professional Management: Joint stock companies can hire professional managers who have expertise in running the business, leading to efficient management.
5. Perpetual Existence: A joint stock company has a separate legal entity from its shareholders, ensuring its continuity even in the event of the death or withdrawal of shareholders.
| 3. How can a joint stock company raise capital? | |
Ans. A joint stock company can raise capital through the following ways:
1. Issue of Shares: A company can issue shares to the public and raise capital by selling these shares.
2. Issue of Debentures: Debentures are long-term borrowings by a company. A company can issue debentures to raise capital.
3. Retained Earnings: A company can retain a portion of its profits and use it as capital for future expansions.
4. Loans from Financial Institutions: A company can raise capital by taking loans from banks or other financial institutions.
5. Issue of Bonds: A company can issue bonds and raise capital by selling these bonds to investors.
| 4. Can a joint stock company have unlimited liability? | |
Ans. No, a joint stock company does not have unlimited liability. The liability of the shareholders in a joint stock company is limited to the extent of the face value of the shares they hold. This means that if the company faces financial losses or liabilities, the shareholders are not personally liable beyond their investment in the company.
| 5. What is the legal status of a joint stock company? | |
Ans. A joint stock company has a separate legal entity from its shareholders. It can sue and be sued in its own name, enter into contracts, and acquire or dispose of property. The company's shareholders are not personally liable for the company's debts or actions, except to the extent of their investment in the company.
Related Exams
About this Video
|
Nov 08, 2024 Last updated |
Advantages/Merits of Joint Stock Company-CBSE/NCERT Class 11 Business Studies,HSC,Class 12 for Class 112024 is part of Class 11 preparation. The notes and questions for Advantages/Merits of Joint Stock Company-CBSE/NCERT Class 11 Business Studies,HSC,Class 12
have been prepared according to the Class 11 exam syllabus. Information about Advantages/Merits of Joint Stock Company-CBSE/NCERT Class 11 Business Studies,HSC,Class 12 covers all important topics
for Class 112024 Exam. Find important definitions, questions, notes, meanings, examples, exercises
and tests below for Advantages/Merits of Joint Stock Company-CBSE/NCERT Class 11 Business Studies,HSC,Class 12.
Introduction of Advantages/Merits of Joint Stock Company-CBSE/NCERT Class 11 Business Studies,HSC,Class 12 in English is available as part of our Class 11 preparation & Advantages/Merits of Joint Stock Company-CBSE/NCERT Class 11 Business Studies,HSC,Class 12 in Hindi
for Class 11 courses. Download more important topics, notes, lectures and mock test series for Class 11 Exam by
signing up for free.
Description
Video Lecture & Questions for Advantages/Merits of Joint Stock Company-CBSE/NCERT Class 11 Business Studies,HSC,Class 12 Video Lecture - Class 11 full syllabus preparation | Free video for Class 11 exam.
Information about Advantages/Merits of Joint Stock Company-CBSE/NCERT Class 11 Business Studies,HSC,Class 12
Here you can find the Advantages/Merits of Joint Stock Company-CBSE/NCERT Class 11 Business Studies,HSC,Class 12 defined & explained in the simplest way possible. Besides explaining types of Advantages/Merits of Joint Stock Company-CBSE/NCERT Class 11 Business Studies,HSC,Class 12
theory, EduRev gives you an ample number of questions to practice Advantages/Merits of Joint Stock Company-CBSE/NCERT Class 11 Business Studies,HSC,Class 12 tests, examples and also practice Class 11 tests.
|
Explore Courses for Class 11 exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
Related Searches
MCQs
,Advantages/Merits of Joint Stock Company-CBSE/NCERT Class 11 Business Studies
,Extra Questions
,Class 12 Video Lecture
,Viva Questions
,Semester Notes
,video lectures
,Advantages/Merits of Joint Stock Company-CBSE/NCERT Class 11 Business Studies
,mock tests for examination
,Free
,shortcuts and tricks
,ppt
,Previous Year Questions with Solutions
,Summary
,Advantages/Merits of Joint Stock Company-CBSE/NCERT Class 11 Business Studies
,study material
,past year papers
,HSC
,Exam
,Class 12 Video Lecture
,HSC
,practice quizzes
,Class 12 Video Lecture
,HSC
,Objective type Questions
,Sample Paper
,Important questions
;
Study Advantages/Merits of Joint Stock Company-CBSE/NCERT Class 11 Business Studies,HSC,Class 12 on the App
Students of Class 11 can study Advantages/Merits of Joint Stock Company-CBSE/NCERT Class 11 Business Studies,HSC,Class 12 alongwith tests & analysis from the EduRev app,
which will help them while preparing for their exam. Apart from the Advantages/Merits of Joint Stock Company-CBSE/NCERT Class 11 Business Studies,HSC,Class 12,
students can also utilize the EduRev App for other study materials such as previous year question papers, syllabus, important questions, etc.
The EduRev App will make your learning easier as you can access it from anywhere you want.
The content of Advantages/Merits of Joint Stock Company-CBSE/NCERT Class 11 Business Studies,HSC,Class 12 is prepared as per the latest Class 11 syllabus.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup