Webneha shahi vishen##joint stock companyDemerits of joint stock company##class 11 theBusiness studyCommerce WebOne of the main demerits of a joint stock company is the high cost of formation and maintenance. Incorporating a company requires a significant amount of legal and administrative work, and there are ongoing expenses for compliance, reporting, and other regulatory requirements.
Joint Stock Company - Merits and Demerits - Exam Notes
WebSome of the most important merits of Joint Stock Companies are as follows: 1. Mobilisation of huge financial resources: The biggest advantage of company organisation is that it has the inherent ability to mobilise huge financial resources. Because of ‘number of persons’ in India and abroad who can become members in a company. WebMar 3, 2024 · A joint stock company is a form of organization where investors or shareholders with a common purpose pool their funds to form a company. This type of … funny valentine stand cry
Joint Stock Company - Toppr-guides
WebFeb 23, 2024 · While a joint-stock company can bring a wide range of benefits, there are still a few disadvantages worth highlighting. Here are some of the most common disadvantages to a joint-stock company. Excessive Legal Formalities : There are extensive legal formalities involved in the formation and management of a joint-stock … WebThe merits of the Joint Stock Company are as follows: Transferability of Shares: Shares of a public company can be transferred easily and freely. There is a high degree of liquidity in shares. Permission of directors or members need not be taken for buying and selling shares. This helps to attract investors to public companies. WebDisadvantages of the joint-stock company are as follows: The procedure of forming a joint-stock corporation is lengthy and time-consuming. The primary drawback of such businesses is that it is a pricey procedure. The typical length of time is a few days to a few months. All public firms are required by the Company Act to keep public documents. funny vape shirts