Lesson 7 Flashcards
1
Q
Features of joint stock company
A
Separate legal existence Perpetual succession Limited liability Transferability of shares Comman seal Separation of ownership and control Voluntary association Artificial legal person Corporate finance Statutory regulation and control
2
Q
Objectives of joint stock company
A
Rapid industrialisation Better utilization of resources Mobilation of idle resource Large scale production Self reliance Growth of social sector and economy Employment Generation Improvement in standard of living
3
Q
Distinction between partnership and joint stock company
A
Formation and registration Number of members Legal status Liability Statutory control Change of subjects Management Stability Majority rule Accts and audit Implied agency Common seal Minimum paid up capital Distribution of profit Winding up Regulatory status
4
Q
Merits of a company
A
Large capital resource Limited liability Continuity of existence Efficient management Transferability of share Economics of scale Democratic management Goodwill Social advantage
5
Q
Demerits of joint stock company
A
Legal formalities Lack of motivation Delay in decisions Economic oligarchy Corrupt management Excessive government control Unhealthy speculation Conflict of interest Social evil
