Joint Stock Company Characteristics Quiz
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Questions and Answers

What is the primary characteristic of a joint-stock company?

  • Unlimited liability for the shareholders
  • Ownership by a single individual
  • Restriction on the transfer of shares
  • Limited liability for the shareholders (correct)

    • How does a joint-stock company raise capital?

  • By issuing shares of stock to investors (correct)
  • By issuing bonds to external investors
  • By relying solely on government grants
  • By obtaining loans from other companies

    • What is a joint-stock company?

  • A company that issues shares of stock to multiple shareholders (correct)
  • A company owned by a single shareholder
  • A company that operates without any shareholders
  • A company that only issues bonds to raise capital

    • What is an advantage of a joint-stock company for investors?

    <p>Potential for high dividends and capital appreciation</p> Signup and view all the answers

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