A company made up of a group of shareholders. Each shareholder contributes some money to the company and receives some share of the company's profits and debts.

• A. Corporation
• B. Joint stock company
• C. Limited liability company
• D. Partnership

Answer: (B)

This question is about how capital is raised and ownership is shared through shares. In a joint stock company, a group of investors contributes money by buying shares. Each shareholder owns a portion of the company proportional to their shares and, in turn, receives a portion of the profits as dividends while also sharing in the company’s debts to the extent of their investment. The defining idea is that ownership and risk are tied to shareholding, and the business is funded by many investors rather than a single partner or a single owner. This setup allows large-scale financing and easy transfer of ownership through selling shares. The description fits a joint stock company because it centers on multiple shareholders who collectively fund the business and share profits and losses according to their shares.