The capital of a joint stock company is ordinarily divided into:
Correct answer: B. Shares
- A. Debts
- B. Shares
- C. Reserves
- D. Partnership units
Explanation
Share capital is divided into units called shares, which represent ownership interests in the company. Debts and reserves are sources or classifications of funds, not ownership units.
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About Nature and Forms of Business Organisation
Business organisation combines people, capital, materials and entrepreneurship to produce goods or services and earn profit, while also meeting customer and social needs. Coverage includes sole proprietorships, partnerships, companies and cooperatives, with comparisons of ownership, liability, control, profit sharing, continuity and legal status.
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