JSC123

What is a joint stock company?

• a) A business entity owned and operated by a single individual

• b) A business organization owned by shareholders who each own a portion of the company

• c) A government-owned corporation

• d) A non-profit organization

Which of the following is NOT a characteristic of a joint stock company?

• a) Limited liability for shareholders

• b) Transferability of shares

• c) Unlimited liability for shareholders

• d) Perpetual succession

WHICH IS THE FEATURE OF JSC

• CONTROL

• ARTIFICIAL PERSON

• UNLIMITED LIABILITY

• RISK BEARING

What is the minimum number of members required to form a joint stock company?

• 1

• 20

• 2

• 100

Which document contains the rules and regulations governing the internal management of a joint stock company?

• a) Memorandum of Association

• b) Articles of Association

• c) Prospectus

• d) Certificate of Incorporation

What is the main advantage of a joint stock company as a form of business organization?

• a) Limited liability for shareholders

• b) Simple management structure

• c) Unlimited liability for shareholders

• d) Tax advantages for shareholders

Which financial statement provides a snapshot of a joint stock company's financial position at a specific point in time?

• a) Income statement

• b) Cash flow statement

• c) Balance sheet

• d) Statement of retained earnings

What is the term for the portion of a company's profits distributed to its shareholders?

• a) Dividend

• b) Royalty

• c) Interest

• d) Capital gain

What is the process of converting a private company into a public company called?

• a) Privatization

• b) Nationalization

• c) Incorporation

• d) IPO (Initial Public Offering)