A joint stock company form of business organization is found to be suitable where the volume of business is large and huge financial resources are needed.
Since members of a joint stock company have limited liability it is possible to raise capital from the public without much difficulty. This form of organization is also suitable for businesses which involve heavy risks.
Again, for business activities which require public support and confidence, joint stock form is preferred as it has a separate legal status.
Certain types of businesses, like production of pharmaceuticals, machine manufacturing, information technology, iron and steel, aluminum, fertilizers, cement, etc., are generally organized in the form of joint stock companys.
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