Questions

Joint stock company is a voluntary association of individuals for profit, having a capital divided into transferable shares, the ownership of which is the condition of membership.

The definition of a joint stock company highlights the following features of a company.

Separate legal entity:From the day of its incorporation, a company acquires an identity, distinct from its members. Its assets and liabilities are separate from those of its owners. The law does not recognise the business and owners to be one and the same.

The management and control of the affairs of the company is undertaken by the Board of Directors, which appoints the top management officials for running the business. The directors hold a position of immense significance as they are directly accountable to the shareholders for the working of the company. The shareholders, however, do not have the right to be involved in the day-to-day running of the business. The liability of the members is limited to the extent of the capital contributed by them in a company

The risk of losses in a company is borne by all the shareholders. This is unlike the case of sole proprietorship or partnership firm where one or few persons respectively bear the losses.

Alluvial Soils

The proportion of nitrogen is generally low, but potash, phosphoric acid and alkalis are adequate, while iron oxide and lime vary within a wide range.

Black Soils

Chemically, the black soils are rich in lime, iron, magnesia and alumina. They also contain potash. But they lack in phosphorus, nitrogen and organic matter.

Laterite Soils

With rain, lime and silica are leached away, and soils rich in iron oxide and aluminium compound are left behind.