10 Questions
What is a joint-stock company?
A joint-stock company is a business entity in which shares of the company's stock can be bought and sold by shareholders.
What is the ownership of a joint-stock company based on?
The ownership of a joint-stock company is based on shares (certificates of ownership) held by shareholders.
What is the legal status of a joint-stock company?
Incorporated (possession of legal personality separate from shareholders) and limited liability (shareholders are liable for the company's debts only to the value of the money they have invested in the company).
What is the advantage of being a shareholder in a joint-stock company?
Shareholders are able to transfer their shares to others without affecting the company's existence.
What are joint-stock companies commonly known as?
Joint-stock companies are commonly known as corporations or limited companies.
What is the significance of limited liability in joint-stock companies?
Limited liability ensures that shareholders are only liable for the company's debts up to the value of their investments.
What is the difference between a joint-stock company and an unlimited company?
A joint-stock company has limited liability and separate legal personality, while an unlimited company does not have limited liability.
What is the role of shareholders in a joint-stock company?
Shareholders own company stock and can buy, sell, and transfer their shares to others without affecting the company's existence.
What is the relationship between incorporation and joint-stock companies?
Incorporation is often synonymous with the existence of a joint-stock company, as it signifies the possession of separate legal personality.
Are joint-stock companies always known as corporations or limited companies?
No, in some jurisdictions, joint-stock companies can be registered without limited liability and are known as unlimited companies.
Test your knowledge on joint-stock companies with this quiz! Learn about the structure, ownership, and transferability of shares in these unique business entities. Explore the legal aspects and understand how joint-stock companies operate in modern corporate law.
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