Question

Rural Residential Development Company and Suburban Real Estate Corporation form a joint stock company. A joint stock company can be formed for, at the most,
A. a perpetual existence.
B. a stated duration of not more than one year.
C. an implied duration of not more than six months.
D. a single activity or transaction.

Answer 1

Answer:

A. a perpetual existence.  

Explanation:

A joint stock company is, as a rule, created to last indefinitely, overcoming the temporal limitation of human beings. This durability allows companies' economic activities to exceed the life span of a lifetime.

A joint stock company is therefore largely responsible for the advanced state of the world economy today. Were it not for its creation, as an instrument capable of adding significant capital value to several people and spreading the venture's risk, it would certainly not be possible to take advantage of all the technologies available today.