Commercial Applications
Statement I : A public company is required to publish and file its accounts.
Statement II : It is very easy to maintain business secrets.
- Only I is correct
- Only II is correct
- Both I and II are correct
- Both I and II are wrong
Joint Stock Company
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Answer
Only I is correct
Reason — Statement I is correct because a public company is required to publish and file its accounts as per legal requirements. Statement II is wrong because it is very difficult to maintain business secrets in a public company. Since the company has to disclose its accounts and other information to the public, regulators and shareholders, lack of secrecy is one of the main disadvantages of a joint stock company.
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