What is a Joint Stock Company Explain how it overcomes the limitations of non corporate form of organisation

Hello,

A joint-stock company is a business owned by its investors, with each investor owning a share based on the amount of stock purchased.

Joint-stock companies are created in order to finance endeavors that are too expensive for an individual or even a government to fund.

There are many advantages of joint stock company including:

• 1) Huge Financial Resources:
• (2) Efficient Management:
• (3) Limited Liability:
• (4) Transferability of Share:
• (5) Diffusion of Risk:
• (6) Stability:
• (7) Public Confidence:
• (8) Scope for Expansion

Members’ liability in a company is limited by shares or by guarantee. Such form of organization has to comply with varied statutory requirements. It is suitable when large resources are required.

Hope this helps!!!