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प्रश्न
Write short answer of the following.
State demerits of Joint Stock company.
उत्तर
The following are the demerits of a joint stock company:
i. Complexity information: Formation of a joint stock company requires a large number of procedures and formalities. The legal procedures involved in the formation are not only lengthy but also expensive.
ii. Lack of secrecy: A joint stock company must submit the information about its operations to the Registrar of Companies. This makes it difficult for companies to maintain secrecy.
iii. Impersonal work environment: In a joint stock company, management and ownership are separate. In addition to this, the compensation of the management is not directly affected by the profits of the company. This leads to lack of efficiency on part of the managers.
iv. High degree of regulations: A joint stock company needs to follow certain legal formalities like auditing of accounts, filing of reports and documents and voting. These legal provisions make it difficult for the company to operate freely.
v. Delay in decision making: The board of directors and other executives manage the company. Sometimes, because of so many levels of management, decision making is delayed.
vi. Difficulty in winding up: The procedure of winding up a company is complex and cumbersome
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संबंधित प्रश्न
State true or false.
The ownership and management is not separated in a Joint Stock Company.
A company in which there are maximum 50 members.
Features of a Government company.
Features of Multinational Companies.
Government companies are registered under special legislation.
Select the proper option from the options given below and rewrite the completed sentence.
The maximum number of members in a private limited company are ________
Select the proper option from the options given below and rewrite the completed sentence.
The liability of the shareholders in the public limited joint stock company is ________.
Select the proper option from the options given below and rewrite the completed sentence.
The elected representatives of shareholders are called ________.
Select the proper option from the options given below and rewrite the completed sentence.
Registration of a Joint stock company is ________.
Distinguish between the following.
Private Limited company and Public limited company
Write short note on the following.
Features of Joint Stock company
State with reasons whether the following statement true or false.
A joint stock company can raise huge capital.
Distinguish between: Private Company and Public Company
State the important privileges available to a private company.
Briefly explain the following term: Perpetual succession
Briefly explain the following term: Common seal
