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Commerce · Q148

Business and Commerce

Graduate and Post Graduate · Commerce · question 148

Q148

The most important advantage of a joint stock company form of business organization is that _________.

A.
the liability of its member is limited
B.
members can conveniently transfer their shares
Answer
C.
it offers infinite scope for expansion
D.
it mobilizes vast amount of financial resources

Answer: Option B

Solution

Answer: Option B
Solution:
The most important advantage of a joint stock company form of business organization is that members can conveniently transfer their shares. The shares of a company are transferable. Also, in the case of a listed public company they can also be sold in the market and be converted to cash.