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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
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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