Joint stock company :-
The industrial revolution and economic factors are
the main reasons of business expansion. The automatic machinery is replacing
the labor force. The people try to increase production by using modern methods
and techniques. The large size is necessary for various economies in purchases,
sales and production. The banking, transport and insurance services have helped
to expend industry and trade to great extent. The large scale business is necessary to meet the challenges
of competition. The ever increasing size of business is not possible without
capital. A joint stock company is able to raise funds in millions from the internal and external sources. Thus the company is able to overcome the
problems of limited capital, unlimited liability, limited skill and short life
of business.
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