Suitable particularly to ventures uired heavy investment of funds

This form of organisation is suitable particularly to ventures uired heavy investment of funds and hnical know-how played an important role. The company
form of organisation has a legal existence separate from its members and it functions through its common seal. The seal of the company is an official
s:gnature of the company.Modern business may be run in different fonus, prominent among them are sole proprietorship, partnership and company. Sole
proprietorship and partnership forms are not suitable for a large scale business because of their deficiencies in tenus of limited resources, -instability and
unlimited liability.The limitations of these two forms of business organisations, complexity of modern business, large scale production necessitated the
birth of the joint.stock company form of organisation which made way for the availability of huge funds with limited liability for the member-owners. It made
possible for the large number of people to share the ownership of a business with limited liability and liquidity of funds.