Mastering Joint-Stock Companies

A joint-stock company is a business entity in which shares of the company's stock can be bought and sold by shareholders.

The ownership of a joint-stock company is based on shares (certificates of ownership) held by shareholders.

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).

<p>Shareholders are able to transfer their shares to others without affecting the company's existence.</p> Signup and view all the answers

<p>Joint-stock companies are commonly known as corporations or limited companies.</p> Signup and view all the answers

<p>Limited liability ensures that shareholders are only liable for the company's debts up to the value of their investments.</p> Signup and view all the answers

<p>A joint-stock company has limited liability and separate legal personality, while an unlimited company does not have limited liability.</p> Signup and view all the answers

<p>Shareholders own company stock and can buy, sell, and transfer their shares to others without affecting the company's existence.</p> Signup and view all the answers

<p>Incorporation is often synonymous with the existence of a joint-stock company, as it signifies the possession of separate legal personality.</p> Signup and view all the answers

<p>No, in some jurisdictions, joint-stock companies can be registered without limited liability and are known as unlimited companies.</p> Signup and view all the answers