Outline some disadvantages of Joint Stock Companies.

      

Outline some disadvantages of Joint Stock Companies.

  

Answers


sharon
1.It lacks secrecy and privacy since it requires audited financial statement annually.
2.The formation of a joint stock company requires long legal formalities.
3.They are difficult to form since they require a heavy capital investment.
4.Joint stock companies can not increase their capital investments beyond the legally
authorized capital.
5.The decision making process of joint stock company is slow and bureaucratic due to
consultations.
6.Joint stock companies are not flexible to changes.
sharon kalunda answered the question on March 2, 2019 at 10:17


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