A disadvantage of a jont-stock company is

Analyze the question: You're asked for a disadvantage of a joint-stock company. Some options describe advantages, so you need to separate the two.

Explain the concept: A joint-stock company is a business owned by many shareholders who contribute capital by buying shares. Its key features are:

• Limited liability: shareholders lose only what they invested.
• Perpetual succession: the company continues to exist even if a shareholder dies or sells their shares.
• Separation of ownership and management: shareholders own the company, but a board of directors runs it.
• Ease of raising large capital from many investors.

Step-by-step solution:

• A. Unlimited liability: This is wrong. It is a feature of sole proprietorships and ordinary partnerships, not joint-stock companies.
• B. Limited liability: This is an advantage, since shareholders' personal assets are protected.
• C. Lack of continuity when a shareholder dies: This is wrong. A company has perpetual succession, so it continues after a shareholder dies. Shares are simply transferred to heirs.
• D. Limited control in management by shareholders: This is correct. Ordinary shareholders, especially those with few shares, have little say in day-to-day running of the company. Directors make the decisions, which can be a real disadvantage for investors.

Answer: D. Limited control in management by shareholders.

Exam tip: Remember "joint-stock = limited liability + perpetual succession". If an option says "unlimited liability" or "lack of continuity", it describes sole proprietorships or partnerships, not companies. In a "disadvantage" question, look for issues such as separation of ownership from control, heavy regulation, or double taxation.