Respuesta :
A joint stock company is an particular legal entity, apart from the persons involved. It can own support and can because it is an entity it can sue or can be sued. Whereas a federation or a sole proprietor, it has no such legal reality apart from the person involved in it.
Why joint stock company is more relevant than other?
As compared to sole proprietorships and partnership firm, a joint stock company can earn huge amount of accounts. It encourages the mobilization of savings of millions for the productive purposes. Since its capital is separated into share of small value, even an ordinary investor can contribute to its capital.
What are the factors of joint stock companies?
The Companies Act 1956 defines a joint stock company as an insincere person created by law, having separate legal entity from its owner with an unchanging sequence and a common seal. Shareholders of Joint Stock Company have limited liability i.e liability limited by warranty or shares.
To learn more about stock company, refer
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