EXPLAIN THE ADVANTAGES AND DISADANTAGES OF A JOINT STOCK COMPANY

Hello Dear Student,

Advantages of Joint Stock Company

1. Limited Liability – Shareholders are liable only up to the amount of shares they own.

2. Perpetual Existence – The company continues to exist even if members leave or die.
3. Large Capital – It can raise a large amount of money from many investors.
4. Transfer of Shares – Shares can be easily bought and sold.

Disadvantages of Joint Stock Company

1. Difficult Formation – Setting up a company involves many legal procedures.

2. Double Taxation – Both the company and shareholders may have to pay taxes.
3. Government Control – Companies must follow many rules and regulations.
4. Slow Decision-Making – Important decisions often take more time due to formal procedures.

Hope this helps!