Formation and Benefits of a Joint Stock Company

The video tutorial discusses the challenges faced by a growing business and introduces the concept of a joint stock company as a solution. It explains the benefits of such a company, including limited liability and perpetual succession. The tutorial also covers the formation process, types of companies, and necessary documentation for registration. The session concludes with a promise to address funding in the next session.

What was one of Mr. Daniel's major concerns as his business grew?

• Funding for projects

• Finding new clients

• Reducing product prices

• Hiring more employees

Which of the following is a benefit of a joint stock company?

• Unlimited liability for shareholders

• Perpetual succession

• Quick decision-making

• No need for audits

What is a potential drawback of forming a joint stock company?

• Limited liability

• Increased transparency

• Perpetual succession

• Lengthy formation process

Who is responsible for the formation of a joint stock company?

• Directors

• Promoters

• Employees

• Shareholders

What is the minimum number of promoters required for a public limited company?

• 10

• 7

• 2

• 5

Which document outlines the powers and objectives of a company?

• Business Plan

• Memorandum of Association

• Article of Association

• Certificate of Incorporation

What will the next session address regarding Mr. Daniel's business?

• Funding solutions

• Employee training

• Product development

• Marketing strategies