Question 25
Business OrganisationsWhich of the business organizations listed below is characterized by limited authority and liability of the individual owners?
- A.Sole proprietorship
- B.Partnership
- C.Joint stock company
- D.Co-operative society.
Show the answer and explanation
Answer: C (Joint stock company)
Explanation
In a joint stock company the shareholders' liability is limited to their shares, and individual shareholders have little say in daily management.