GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A firm is said to be a Public Joint-Stock Company when itA. is owned by the governmentB. operates as a public corporationC. is a limited liability companyD. sells its shares to members of the public
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A
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B
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C
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D
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Explanation:
Detailed explanation-1: -In case of a public limited company the liability of the shareholder is to pay up to the nominal value of shares. The company can at any time ask the shareholders to pay the unpaid calls on the shares. In case of loss, shareholders are not liable to pay more than the nominal value of shares.
Detailed explanation-2: -A joint stock company is an organisation which is owned jointly by all its shareholders. Here, all the stakeholders have a specific portion of stock owned, usually displayed as a share.
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