Justify the following statement: The Joint Stock Company collects huge capital from the public.
Justify the following statement:
The Joint Stock Company collects huge capital from the public.
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- A company requires large capital to carry out its activities.
- This capital is being collected from the public as it is not possible for an individual to contribute such a big amount.
- A company issues shares, debentures, bonds and also accepts public deposits for raising its capital.
- A company can also take loans from banks and financial institutions.
- a Large number of members bring in a large number of funds that can be profitably invested in the expansion of the company.
- So, for a large-scale business, large capital is collected by the Joint Stock Company.
- Thus, the Joint Stock Company collects huge capital from the public.
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