Advantages of Joint-stock Company:

i. Generation of Large Capital: Joint-stock companies are able to raise larger capitals when compared with the other forms of businesses, from the sale of shares and debentures from the public. They are therefore able to engage in large-scale production and thereby enjoy economics of scale.

ii. Limited Liability: The liability of each shareholder is limited to the capital he/she has contributed to the company.

iii. Efficient Staff: The companies are able to employ the services of specialized and efficient staff in various aspect of the company. It is possible for the public limited liability company to practice division of labour to increase productivity of employees.

iv. Easy transfer of Membership: Membership is open to the general public and does not require the approval of other members. It is also easy for a shareholder to leave the company by selling or transferring his shares to another person.

v. Size of Ownership: Business risks are spread over a greater number of people (the shareholders) thereby reducing individual liability.

vi. Separate Entity: The public limited liability company has a separate entity, can sue and be sued.