What is joint stock company in simple words?
A joint-stock company is a business owned by its investors, with each investor owning a share based on the amount of stock purchased. Joint-stock companies are created in order to finance endeavors that are too expensive for an individual or even a government to fund.
What does joint stock company mean in history?
A joint-stock company is a type of business organization wherein the risk and cost of doing business is mitigated through the sale of shares. The most famous joint-stock companies in history were those founded in Europe for the purposes of conducting long-distance overseas trade.
What is joint stock company with example?
Joint stock company is a type of business organization that is owned by its investors. In a joint stock company the company stock can be bought and sold by the shareholders. Shareholders should be having possession of at least 1 stock of the company in order to be counted as a partial owner.
What is the meaning of Joint Stock Company answer in one sentence?
Ans: Joint Stock Company is an artificial person created by law, having an Independent legal status, owned by shareholders and managed by Board of Directors.
What is a joint-stock company quizlet?
joint stock company. A company made up of a group of shareholders. Each shareholder contributes some money to the company and receives some share of the company's profits and debts.
What were joint-stock companies and why were they important?
The joint-stock company was the forerunner of the modern corporation. In a joint-stock venture, stock was sold to high net-worth investors who provided capital and had limited risk. These companies had proven profitable in the past with trading ventures. The risk was small, and the returns were fairly quick.
What is another name for joint-stock company?
Therefore, joint-stock companies are commonly known as corporations or limited companies.
How many members are in a joint-stock company?
The Companies Act specify that there must be a minimum number of two members to form a joint stock company. The maximum number of members reaches 50. This is a considerable difference considering that for public limited companies the minimum number of members is 7, while the maximum number is not specified.
What is the difference between partnership and joint-stock company?
A partnership firm is a form of business organisation 1 owned and managed by two or more persons i.e. partners for earning profit. A joint stock company is an incorporated voluntary association of individuals for profit, created by law, owned by the shareholders but managed by their few representatives, i.e. Directors.
What is the meaning of joint-stock company shaala?
Solution. Introduction: - A Joint stock company is a separate entity formed by a number of persons contributing a fixed capital in the formation of shares (sharing the ownership of the company) with liability of each share holder being limited to his investment in the company only.
What are the features of joint-stock company Class 11?
The main characteristics or features of a Joint Stock Company are:An Artificial Person: ... Separate Legal Existence: ... Legal Formation: ... Voluntary Organisation: ... Perpetual Succession: ... Limited Liability: ... Large Capital: ... Transferability of Shares:More items...
What is the characteristics of joint-stock company?
It has a separate legal entity apart from its members. A company acts independently of its members. The company is not bound by the acts of its members and members do not act as agents of the company. A person can own its shares and can be its creditor too.