View Full Version : Dec 2009 Session 1
Explain, and analyse the issues raised by the development of the joint stock company as the domimant form of business organisation and the separation of ownership and ctrl over business activity.
is this in our P1 syllabus? I cannot find it in my text.
A joint stock company has some features like a corporation and a partnership. Shareholders of joint stock company have limited liability and the company has the ability to sell fully transferable stock.
Yes..i postd it 4m da the study guide. I evn cant find the answer in the text. I think we have to discuss the answer.
Ok, Let me look it up and get back to you.
Um totally stressed up nd in a bad mood. I wil post my answer 2morrow
euniceliew
23-08-09, 10:09 PM
Hi,
May I know the topic discussed here now is related to P1?
Hi,
May I know the topic discussed here now is related to P1?
Yes, the topic being discussed is related to P1 :)
Acid. Do u knw the answer to this questn. If so could u pls spare sumtym to answer this. Remembr its fr askin 'issues' related to the subject
With the increase in size and complexity of business, collection of vast financial and managerial resources became necessary. The company form of organization was developed to overcome the limitations of small resources, unlimited liability and instability. Joint Stock Company has become the dominant form of organization for large scale operations as it facilitates the collection of vast financial and managerial resources with provision for limited liability and continuity of existence.
However the shareholder do not control the business, directors do. This creates an agency problem. The directors may not act according to the shareholders will.
I may not be right. If someone feel that the answer is wrong, needs to be modified or should be longer with more points than feel free to express your view.
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