[amp_mcq option1=”Sole-proprietorship” option2=”Partnership” option3=”Joint stock companies” option4=”Co-operative societies” correct=”option3″]<\/p>\n
The correct answer is: C. Joint stock companies.<\/p>\n
Capitalization is the process of raising money by issuing shares or bonds. It is used to finance the operations of a business, such as purchasing equipment, hiring employees, and marketing products or services.<\/p>\n
Sole proprietorships, partnerships, and co-operative societies do not issue shares or bonds, so they do not use capitalization.<\/p>\n
In a joint stock company, the ownership of the company is divided into shares. These shares can be bought and sold by investors, which means that the ownership of the company can change hands over time. The shareholders elect a board of directors, who are responsible for managing the company on behalf of the shareholders.<\/p>\n
The amount of money that a company can raise through capitalization depends on the number of shares that are issued and the price of each share. The price of a share is determined by supply and demand. If there is a lot of demand for shares in a company, the price of the shares will be high. If there is not much demand for shares in a company, the price of the shares will be low.<\/p>\n
Capitalization is an important tool for businesses of all sizes. It allows businesses to raise money to finance their operations and grow their businesses.<\/p>\n","protected":false},"excerpt":{"rendered":"
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