Consider the following statements about a joint -stock company : 1. It has a legal existence. 2. There is limited liability of share-holders. 3. It has a democratic management. 4. It has a collective ownership. Which of the statements given above are correct?

CDS 2019 PYQ with Answer — Consider the following statements about a joint -stock company : 1. I…

2019 · Q24

Consider the following statements about a joint -stock company :

1It has a legal existence.
2There is limited liability of share-holders.
3It has a democratic management.
4It has a collective ownership.

Which of the statements given above are correct?

General KnowledgeIndian Economy

A1 and 2 only
B1, 2 and 3 only
C3 and 4 only
D1, 2, 3 and 4

Explanation

A joint-stock company is a body corporate with a separate legal existence distinct from its members. Its shareholders enjoy limited liability, and its management is democratic in the sense that directors are elected by shareholders and decisions are taken by majority. Ownership is collective, being divided into freely transferable shares held by many. All four statements describe its features. Hence option D is correct.