Which feature is most characteristic of a joint stock company?
Correct answer: C. Ownership divided into transferable shares
- A. Capital contributed only by employees
- B. Management restricted to one owner
- C. Ownership divided into transferable shares
- D. Membership ending whenever a shareholder dies
Explanation
A joint stock company raises capital by dividing ownership into shares held by its members. Its existence is normally not ended by the death or withdrawal of an individual shareholder.
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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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