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LoginThe ownership and management are not separate in Joint stock company. (State with reason whether the given statement is true or false)
Business Studies Secondary School in Business Studies 1 year ago
above STATEMENT is False. (i) The shareholder in the company is large and they are spread all over the COUNTRY. Therefore, they cannot take part in the day to day routine business of the company. (ii) Therefore, the management of the company is done professionally by experts who are the representatives of the shareholders are called the board of Directors. (iii) Further, these shares are easily and freely transferable in public limited company. The shareholder does not have to take PERMISSION of other shareholders or the company before transfering the shares. Therefore, the membership of the company keeps changing on frequently. (iv) Hence, shareholders appoint their representative i.e. the Board of Directors who handles the management on their behalf. Thus in JOINT Stock company management and ownership is separated.
Posted on 21 Sep 2024, this text provides information on Business Studies related to Secondary School in Business Studies. Please note that while accuracy is prioritized, the data presented might not be entirely correct or up-to-date. This information is offered for general knowledge and informational purposes only, and should not be considered as a substitute for professional advice.
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