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प्रश्न
Justify the following statement.
The Joint Stock Company collects huge capital from the public.
उत्तर
(1) A joint stock company can raise a large amount of funds through different sources like
(i) the issue of shares and debentures,
(ii) accepting public deposits, etc. A company has a large number of shareholders spread over a very wide area. In the case of a public company, there is no maximum limit for the number of shareholders. Hence, it can raise huge capital from a large number of shareholders. Smaller denomination of shares, limited liability, easy liquidity, and transferability, etc. enable even a common man to invest in the shares of a company. Thus, a company can raise huge funds through the mobilisation of scattered savings of the people.
(2) As there are different types of shares, the company can make an appeal to different kinds of investors to collect a huge amount of funds in the form of share capital. In addition, it can raise borrowed capital by issuing debentures of different types and accepting deposits from the public. AS company enjoys better creditworthiness in the money market, it can raise borrowed capital by taking short term, medium-term and long term loans from the banks and other financial institutions.
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संबंधित प्रश्न
Distinguish between the following:
Sole Trading concern and Partnership Firm.
Distinguish between the following:
Joint Stock Company and Co-operative society.
Justify the following statement.
Registration of the Joint Stock Company is compulsory.
Justify the following statement.
The ownership and management are separated in Joint Stock Company.
Justify the following statement.
There is more Government control and supervision over the working of Joint Stock Company.
State True or False:
There is a separation of ownership & management in the Joint Stock Company.
State True or False:
Board of Directors manages the business of Joint Stock Company.
Complete the sentence.
Registration of Joint stock company is compulsory according to the Companies Act _______.
Answer in one sentence.
What is the meaning of Joint Stock Company?
Correct the underlined word and rewrite the following sentence.
Registration of Joint Stock Company is not compulsory.
Answer in brief.
State any four demerits of Joint Stock Company.
Justify the following statement.
A Joint Stock Company can raise huge capital.
Justify the following statement.
There is separation of ownership and management in Joint Stock Company.
Attempt the following:
Explain the demerits of Joint Stock Company.
