Why did governments authorize the creation of joint-stock companies?

Students were asked over to answer a question at schools and to claim what is most important for them to succeed. Of the many responses, the one which that stood out was practice. Successful people generally are not born successful; they become successful with hard work and determination. If you want to attain your goals, keep this in mind! in the following paragraphs some question and answer examples that you can certainly utilize to supercharge your knowledge and gain insight that will guide you to preserve your school studies.

Question:

Why did governments authorize the creation of joint-stock companies?

Answer:

Answer:

to stop shareholders from buying stocks

Explanation:

Joint-stock companies is a for-profit company model, characterized by having its financial capital divided by stock. The owners of the stock are called shareholders and in this case the company must always have two or more shareholders.

Private limited joint-stock companies do not allow their stocks to be available for trading on the stock exchange market, for example. The resources are limited only among the shareholders, that is, the partners of the company. For this reason, governments allow the creation of such a company, to prevent shareholders from buying stocks.

From the answer and question examples above, hopefully, they may help the student handle the question they had been looking for and observe of the whole thing declared in the answer above. Then can easily make some sharing in a group discussion and also study with the classmate about the topic, so another student also possess some enlightenment and still keeps up the school learning.

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