Commercial Applications
A joint stock company is a …………… association of certain persons formed to carry out a particular purpose in common.
- voluntary
- corporate
- legal
- liable
Joint Stock Company
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Answer
voluntary
Reason — A joint stock company is a voluntary association of certain persons formed to carry out a particular purpose in common. Members of a company can join it and leave it at their own free will. There is no compulsion on anyone to become a member of a company.
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Related Questions
The features of a joint stock company are :
- Separate legal existence
- Limited liability
- Perpetual succession
- All of these
Statement I : A shareholder can't withdraw his membership from the company by transferring his shares.
Statement II : In actual practice some restrictions are placed on the transfer of shares.
- Only I is correct
- Only II is correct
- Both I and II are correct
- Both I and II are wrong
Assertion (A): Transferability of shares makes public companies more attractive to investors.
Reasoning (R): Public companies allow shareholders to transfer shares without restrictions, providing liquidity to their investments.
- Both A and R are true, and R is the correct explanation of A.
- Both A and R are true, but R is not the correct explanation of A.
- A is true, but R is false.
- A is false, but R is true.
Statement I : A company is an artificial person created by law having no physical body of a natural human being.
Statement II : A company can't exist in the contemplation of law.
- Only I is correct
- Only II is correct
- Both I and II are correct
- Both I and II are wrong