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⚫ (b) Partnership
⚫ Division of labour: Because there are more than two persons, the work can be
divided among the partners based on their aptitude.
⚫ Flexibility: All the partners are likeminded persons and hence they can take
any decision relating to business.
Other Features (Continued)…
⚫ Joint and Several Liability: All the partners are
equally responsible
⚫ 3. Amount of capital of the partnership and the ratio for contribution by each of the
partners
⚫ 4. Duration of business
⚫ It is generally defined as a
‘notice, circular, advertisement that discloses full
information relating to the amount of shares
issued, the rights attached to each type of shares
issued etc..
Contents of Prospectus:
⚫ The following are the contents of the prospectus:
⚫ (a) The name of the company and addresses of its
registered office
⚫ (b) the nature and business of the company
⚫ (c) the main objectives of the company
⚫ (d) the number and types of shares and debentures issued in
the past
⚫ (e) the list of promoters with their names, addresses
⚫ (f) the list of directors with their names, addresses
and occupations
⚫ (g) Opening and closing date of public offer
⚫ (h) details of the brokers, underwriters, merchant bankers etc.
⚫ (i) Rights and restrictions as applicable to each class of shares.
⚫ (j) Minimum number of shares to be applied and how much is
ADVANTAGES OF JOINT STOCK
⚫ Mobilization
COMPANY: of larger resources
⚫ Separate legal entity
⚫ Limited Liability
⚫ Transferability of shares
⚫ Liquidity of investment
⚫ Inculcates the habit of savings and investments
⚫ Democracy in management
⚫ Economies of large scale production
⚫ Continued existence
⚫ Institutional Confidence
DISADVANTAGES OF JOINT – STOCK
COMPANIES:
5. No Borrowing Power