Registered Insurance Brokers of Ontario (RIBO) Exam 2026 – 400 Free Practice Questions to Pass the Exam

Question: 1 / 475

Is a joint stock company a profit-making organization owned by its shareholders?

True

A joint stock company is indeed a profit-making organization owned by its shareholders. The primary characteristic of a joint stock company is that ownership is divided into shares, which are held by the shareholders who invest capital into the company. These shareholders have the potential to earn profits through dividends, which are distributions of the company's profits based on the number of shares they own. This structure allows for the accumulation of capital for larger business ventures while limiting the liability of the shareholders to the amount they have invested. Therefore, characterizing a joint stock company as a profit-making organization owned by its shareholders is accurate.

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