A major advantage of a joint stock company isQuestion 11Answera.limited Liabilityb.Easy formationc.short Lifed.Secrecy
Question
A major advantage of a joint stock company isQuestion 11Answera.limited Liabilityb.Easy formationc.short Lifed.Secrecy
Solution
The major advantage of a joint stock company is "limited liability". This means that if the company faces financial loss or goes into debt, the shareholders of the company are not personally responsible for covering these losses. Their liability is limited to the amount they have invested in the company's shares. This is a significant advantage as it reduces the risk for investors and can attract more investment.
Similar Questions
A major disadvantage of sole tradership isQuestion 17Answera.Unlimited Liabilityb.Easy formationc.Large Lifed.Secrecy
All of these are advantages of a company structure compared to a sole trader or a partnership, except:Group of answer choiceslimited liability.less government regulation.access to additional capital through the sale of shares.perpetual life.
Limited liability, indefinite length of life, ease of expansion, legal entity, and transfer of ownership are considered advantages of a?Question 4Answera.partnership.b.corporation.c.trade union.d.sole proprietorship.
What is the main advantage of a partnership over a sole proprietorship? A. Shared decision making B. Limited liability C. Tax benefits D. Separate legal entity
The main advantage of a listed company is:
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.