MGT703 MIDTERM PAST PAPERS
Concurring o S.E. Thomas, “An organization is a joined relationship of people framed ordinarily for the quest for some business reason.” Prologue to Business – MGT 211 VU © Copyright Virtual University of Pakistan .
Primary Diagram Highlights OF JOINT STOCK COMPANY Following are the fundamental elements of a Joint Stock Company. 1. Formation of Law A business entity is the formation of regulation or exceptional ‘Demonstration’ of the state.
It is shaped and represented by the Companies Ordinance or by an exceptional Act of the lawmaking body. Pakistani organizations are fused under the Companies Ordinance, 1984. 2. Capital Borrowing The organization can get capital in its own name to grow the business.
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Separate Legal Entity A Joint Stock Company has separate legitimate substance, aside from its individuals. It can sue in a official courtroom in its own name. MGT703 MIDTERM PAST PAPERS
Legitimate Person A Joint Stock Company, as a legitimate individual, has the typical privileges of any individual to carry on the business in its own name, to claim property, to get or loan cash and to go into contract. 5. Long Life A business entity has long life when contrasted with different types of business associations. MGT703 MIDTERM PAST PAPERS
Restricted Liability The responsibility of the investor is restricted to the degree of the assumed worth of the offers they hold. 7. Enormous Scale Business Due to more individuals, an organization has bigger capital when contrasted with sole exchange transport and association, which helps in carrying on with work for huge scope. Prologue to Business.
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