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PtichkaEL [24]
3 years ago
10

What was one advantage and one disadvantage of joint-stock companies?​

History
1 answer:
Thepotemich [5.8K]3 years ago
5 0
<h2>ADVANTAGE OF JOINT-STOCK COMPANIES</h2>

1. LARGE CAPITAL: The outstanding advantage is that it allows vast mobilization of capital which otherwise is not possible to arrange. In a public company, there is no limit to the number of members. A very large number of people acquire interest in the company by purchasing shares.

<h2>DISADVANTAGE OF JOINT-STOCK COMPANIES</h2>

1. FRAUDULENT MANAGEMENT: Frauds have been a common feature of many a company. The promoters and directors may indulge in fraudulent practices. The company law has devised various methods to check the fraudulent practices but they have not proved to check them completely.

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