A disadvantage of a joint-stock company is?

Assessment: JAMB UTME - Economics - 1991 Subject: Economics

Question 1 Report

A disadvantage of a joint-stock company is?
Answer Details
A disadvantage of a joint-stock company is the potential loss of controlling interest. This means that as more investors buy shares in the company, the original founders or shareholders may lose their ability to make decisions and control the direction of the company. This can be particularly problematic if new shareholders have different goals or ideas for the company than the original founders or shareholders. As a result, the company may end up pursuing strategies that are not in the best interest of its original founders or shareholders.
Read lesson note on Business Organizations (WAEC)
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