Quiz on Joint Stock Companies

What is a Joint Stock Company?

• A business that does not sell shares

• A business that operates without any legal distinction

• A business owned by a single individual

• A type of business that offers shares to the public

What are shares in a company?

• Debts owed by the company

• Ownership rights in the company

• Tax liabilities

• Employee benefits

Which of the following is a characteristic of a Joint Stock Company?

• Limited Liability

• Unlimited Liability

• No separation of ownership from management

• Unincorporated Business

What is the main advantage of a Joint Stock Company?

• Unlimited Liability

• Access to Large Capital

• Slow Decision Making

• Sharing of Profits

Which type of company has a small number of shareholders and shares not publicly traded?

• Non-Profit Companies

• Government Companies

• Public Companies

• Private Companies

(a)   is a business that can obtain capital through sale of shares

Which feature of joint stock companies enables them to attract a large number of investors?

• Unlimited liability

• Limited liability

• Sole proprietorship

• Partnership structure

Which of the following is not a veritable source of funds to a public limited liability company?

• • advances and loans from bank

• • government financial grants

• • internally generated funds

• • funds from the sale of shares

The maximum number of shareholders in a public liability company is

• • twenty

• • one hundred

• unlimited

• • fifty

What type of company allows shareholders to freely transfer their shares?

• Sole proprietorship

• Public limited company

• Partnership

• Private limited company