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State with Reasons Whether the Following Statement True Or False. a Joint Stock Company Can Raise Huge Capital. - Organisation of Commerce and Management

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Question

State with reasons whether the following statement true or false.

A joint stock company can raise huge capital.

Options

  • True

  • False 

MCQ
True or False

Solution

A joint stock company can raise huge capital : True
Explanation: A joint stock company has numerous sources of raising funds. A few of the fund-raising sources include, issuing financial securities (such as shares, debentures and bonds), raising finance from the general public via public deposits and borrowings from banks or other financial institutions. Thus, a joint stock company can raise huge capital.

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Chapter 1: Forms of Business Organisations - True or false [Page 39]

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