Question

Transworld Import Company and USA Export, Inc., form a business organization to engage in importing and exporting. Its property is held in the names of the members and its shareholders have personal liability. This organization is ______.
A) a business trustB) a joint stock company.C) a joint venture.D) a syndicate.

Answer 1

Answer: B- joint stock company

Explanation: A joint-stock company is

a business existence in which shares of the business organization’s merchandise kept on the premises of a warehouse and available for distribution or sale can be purchased or sold by an individual or corporation that lawfully owns one or more mutual funds, limited partner, and real estate investment trusts of stock in a public or private corporations. In this case, a shareholder’s liability is limited to the amount of the share equity that is unpaid, hence he or she has a personal liability.

Answer 2

Answer:

A joint stock company

Explanation:

A joint stock company is a business organisation that is owned jointly by all its shareholders. All the shareholders have a specific amount of stock in the company, which is represented by their amount of shares.

Advantages of joint stock company include:

1) Large amount of capital

2) Limited Liability

3) Stability of Existence

4) High Public Confidence

5) Increased tax Benefits

6) It greatly Promotes Savings and Investment