Untitled Quiz
38 Questions
2 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

There should be at least __________________ members in a Private Limited Company.

two

Freely transfer of shares from one member to another is not possible in case of _____________ Limited Company.

Private

Hindustan Machine Tools is _______________ Company.

Government

Minimum amount of capital required to start a private limited company is Rs _____________.

<p>1 lakh</p> Signup and view all the answers

How many directors must a private company have?

<p>At least two</p> Signup and view all the answers

Which of the following is not a characteristic of cooperative societies?

<p>Profit Motive</p> Signup and view all the answers

Public companies can commence business immediately after receiving the certificate of incorporation.

<p>False</p> Signup and view all the answers

The shares of a public limited company can be freely transferred.

<p>True</p> Signup and view all the answers

What is the minimum paid-up capital required for a public company?

<p>5 lakh</p> Signup and view all the answers

Match the following types of companies with their characteristics:

<p>Private Limited Company = Maximum of 50 members Public Limited Company = Minimum of 7 members Government Company = 51% or more government ownership Multinational Company = Operates in multiple countries</p> Signup and view all the answers

What is a co-operative society?

<p>A voluntary association of persons who work together to promote their economic interest.</p> Signup and view all the answers

A co-operative society is a ________ association of individuals who come together to achieve common ________ objectives.

Signup and view all the answers

What is the meaning of cooperative society?

<p>A cooperative society is an organization owned and operated by a group of individuals for their mutual benefit.</p> Signup and view all the answers

What are the activities undertaken by a Consumer’s Co-operative Society?

<p>Activities include purchasing goods in bulk at reduced prices and selling them to members at a reasonable rate.</p> Signup and view all the answers

Give two examples each of consumer’s cooperative societies and producers cooperative societies.

<p>Consumer's cooperative societies: Co-op Food, REI. Producers cooperative societies: Ocean Spray, Land O'Lakes.</p> Signup and view all the answers

What is meant by Thrift and Credit Society?

<p>A Thrift and Credit Society is a cooperative aimed at promoting savings among its members and providing loans at reasonable rates.</p> Signup and view all the answers

What are the causes of conflict and lack of motivation among members of a cooperative society?

<p>Causes include poor communication, differences in opinion, lack of involvement, and unequal distribution of benefits.</p> Signup and view all the answers

Give the difference between ‘Producers co-operative society’ and ‘Marketing cooperative society’.

<p>Producers cooperative societies focus on production and enhancing the incomes of their members, while marketing cooperatives help in the marketing of the goods produced by their members.</p> Signup and view all the answers

What is meant by Joint Stock Company?

<p>A Joint Stock Company is a business entity where ownership is divided into shares held by shareholders.</p> Signup and view all the answers

State the advantages of Joint Stock Company.

<p>Advantages include limited liability, large financial resources, continuity, transferability of shares, and social benefits.</p> Signup and view all the answers

State the meaning of Multinational Company.

<p>A Multinational Company is a corporation that operates in multiple countries beyond its country of incorporation.</p> Signup and view all the answers

Describe any four characteristics of Joint Stock Company.

<p>Four characteristics include distinct legal entity, limited liability, transferability of shares, and perpetual succession.</p> Signup and view all the answers

What are the features of Private Limited Company? How does it differ from Public Limited Company?

<p>Features include limited liability, restrictions on share transfer, and a limited number of shareholders. It differs as a Public Limited Company can offer shares to the public.</p> Signup and view all the answers

Distinguish Between Private Limited and Public Limited Company.

<p>Private Limited Companies cannot offer shares to the public while Public Limited Companies can.</p> Signup and view all the answers

Enumerate the advantages of Joint Stock Company.

<p>Advantages include limited liability, ability to raise capital, continuity of existence, and shared risk among shareholders.</p> Signup and view all the answers

State the limitations of Joint Stock Company.

<p>Limitations include difficulty of formation, excessive government control, oligarchic management, and lack of secrecy.</p> Signup and view all the answers

Give five examples of Multinational Companies.

<p>Examples include Apple, Microsoft, Coca-Cola, Toyota, and Nestlé.</p> Signup and view all the answers

What is a co-operative society?

<p>A voluntary association of individuals who come together to achieve common economic objectives.</p> Signup and view all the answers

Which of the following is a characteristic of a co-operative society?

<p>Voluntary association</p> Signup and view all the answers

Which of the following types of co-operative societies helps consumers?

<p>Consumer's Co-operative Societies</p> Signup and view all the answers

The liability of members in a co-operative society is unlimited.

<p>False</p> Signup and view all the answers

A co-operative society works on the principle of self-help as well as _____ (fill in the blank).

<p>mutual help</p> Signup and view all the answers

What is the primary aim of a co-operative society?

<p>To provide service to its members.</p> Signup and view all the answers

Match the following types of co-operative societies with their descriptions:

<p>Consumer's Co-operative Society = Protects consumer interests by providing goods at reasonable prices Producers Co-operative Society = Helps producers by providing necessary production items Marketing Co-operative Society = Aids small producers in selling their products Thrift and Credit Co-operative Society = Provides financial support through loans and savings</p> Signup and view all the answers

What type of company is characterized by being an artificial person created by law?

<p>Joint Stock Company</p> Signup and view all the answers

In a Joint Stock Company, shares are freely transferable.

<p>True</p> Signup and view all the answers

Which of the following statements is true regarding a Joint Stock Company?

<p>A Joint Stock Company enjoys perpetual succession.</p> Signup and view all the answers

What is the importance of the Common Seal in a Joint Stock Company?

<p>It represents the company's signature as an artificial person.</p> Signup and view all the answers

Study Notes

Cooperative Societies

  • A cooperative society is a voluntary association of individuals with a common economic objective.
  • The aim of a cooperative society is to provide a service to its members, not to maximize profit.
  • Cooperative societies are based on principles of self-help and mutual help.
  • Examples of cooperative societies include:
    • Consumer Cooperative Societies: These societies purchase goods directly from producers to provide products at a reasonable price for consumers.
    • Producer Cooperative Societies: These societies support small producers by providing them with resources like raw materials, tools, and equipment.
    • Marketing Cooperative Societies: These societies help small producers sell their products by collecting and marketing them in the market.
    • Thrift and Credit Cooperative Societies: These societies provide financial support to members by accepting deposits and granting loans.
    • Cooperative Group Housing Societies: These societies provide residential housing to members by purchasing land and constructing houses or flats.

Joint Stock Companies

  • A joint stock company is an artificial person created by law, with a separate legal entity, perpetual succession, and a common seal.
  • The company's capital is divided into shares.
  • Members who hold shares are called shareholders.
  • Examples of Joint Stock Companies: Tata Steel, Reliance Industries, Coal India, Reliance Power, DLF, Ranbaxy.

Types of Joint Stock Companies

  • Private Limited Company:
    • Minimum paid-up capital required is ₹1 lakh.
    • Restricts the transfer of shares.
    • Limits the number of members to 50.
    • Does not allow public subscription of shares or debentures.
    • Prohibits accepting deposits from non-members, directors, or their relatives.
  • Public Limited Company:
    • Minimum paid-up capital required is ₹5 lakh.
    • Shares are freely transferable.
    • Minimum number of shareholders is 7.
    • Members have limited liability.

Advantages of Cooperative Societies

  • Voluntary organization: Membership is not mandatory.
  • Democratic control: Management is based on one-member, one-vote principles.
  • Open membership: Any competent person can join the society at any time.
  • Elimination of middlemen’s profit: Members control their own supply chain.
  • Limited liability: The liability of members is limited to the capital they contribute.
  • Stable life: The existence of the society is not affected by the death, insolvency, or resignation of members.

Limitations of Cooperative Societies

  • Lack of motive: Members may lack motivation due to the absence of a profit motive.
  • Limited capital: The amount of capital raised from members is limited.
  • Management problems: Management competency may be limited due to low compensation offered.
  • Lack of commitment: Member loyalty is not guaranteed or enforceable.
  • Lack of cooperation: Friction between members due to personality differences or selfish attitudes can hinder the success of the society.

Advantages of Joint Stock Companies

  • Easy to raise capital: Can issue shares to raise capital from a large number of people.
  • Limited liability: Liability of shareholders is limited to the amount invested.
  • Separate legal entity: The company can exist independently of its members.
  • Perpetual succession: The company continues to exist even if members change.
  • Professional management: Can hire experts to manage the company.

Limitations of Joint Stock Companies

  • Complex legal formalities: Formation of a company involves complex procedures and regulations.
  • Costly formation: Setting up a joint stock company is expensive.
  • Management problems: Separation of ownership and management can lead to conflicts of interest.
  • Lack of flexibility: Decision-making takes time due to complex organizational structures.
  • Disclosure requirements: Companies are required to disclose financial information to the public.

Multinational Company

  • A multinational company is an organization operating in multiple countries.
  • Benefits:
    • Access to new markets and resources.
    • Reduced costs and efficiency gains.
    • Diversification of risks.
  • Challenges:
    • Cultural differences.
    • Political and economic risks.
    • Regulatory complexities.

Private vs. Public Limited Companies

  • Private companies must have a minimum paid-up capital of Rs. 1 lakh, while public companies require Rs. 5 lakh.
  • Private company membership is capped at 50, while public companies have no limit.
  • Transferring shares in private companies is restricted, unlike in public companies where it's free.
  • Private companies cannot issue prospectuses, but public companies can invite public investment.
  • Private companies require at least two directors, while public companies need at least three.
  • Private companies can start business immediately after incorporation, but public companies need a certificate of commencement.
  • Private companies don't have statutory meetings, while public companies are mandated to hold them and file reports.
  • A quorum for a private company meeting consists of two members, while a public company requires at least five members.

Advantages of Joint Stock Companies

  • Limited Liability: Shareholders are only responsible for the face value of their shares.
  • Financial Resources: Companies can raise large amounts of capital through share issuance to investors.
  • Continuity: The company remains operational even in case of shareholder death or departure.
  • Share Transferability: Public companies allow for the free transfer of shares.
  • Risk Diffusion: Risks are distributed among many shareholders, reducing the burden on any individual.
  • Social Benefits: Companies contribute to the economy by mobilizing savings and investing in industry.

Limitations of Joint Stock Companies

  • Formation Difficulty: Incorporation can be expensive and complex, requiring extensive documentation.
  • Government Regulation: Companies are subject to strict rules regarding operations, reporting, auditing, and transparency.
  • Oligarchic Management: While management should be democratic, companies are often controlled by a small group of powerful individuals.
  • Decision Delays: Multiple management levels can lead to slow decision-making due to extensive meetings and approvals.
  • Lack of Secrecy: Companies are required to disclose information to the public, potentially revealing sensitive business details.

Government Companies

  • Government companies are defined as entities with at least 51% of their paid-up capital held by the government (Union or State).
  • The Comptroller and Auditor General of India (CAGI) audits government companies, and the reports are presented to Parliament.
  • Examples include Hindustan Machine Tools (HMT), Coal India, SAIL, NTPC, MTNL, and ONGC.
  • Government companies have separate legal existence.
  • The government appoints all or most directors.
  • Employees are not government employees, but work for the company.

Multinational Companies (MNCs)

  • MNCs operate in multiple countries, producing and selling goods and services globally.
  • Examples include Philips, LG, Hyundai, General Motors, Coca-Cola, Nestle, Sony, McDonald's, Citibank, Pepsi Foods, and Cadbury.

Advantages of MNCs

  • Investment in Foreign Capital: Direct investment by MNCs can accelerate economic development.
  • Job Creation: Expansion of MNC operations creates employment opportunities.
  • Advanced Technology: MNCs invest in Research & Development, improving production methods and increasing product quality.
  • Growth of Ancillary Units: Suppliers and industries supporting MNCs often flourish in host countries.
  • Increased Exports and Foreign Exchange: MNCs may export goods produced in host countries, boosting foreign exchange reserves.
  • Healthy Competition: MNC efficiency pushes domestic companies to improve their performance to remain competitive.

Limitations of MNCs

  • Host Country Priorities: MNCs may focus on profitable industries rather than addressing host country development needs.
  • Effect on Domestic Enterprises: MNC dominance can hurt local businesses, leading to closures.
  • Cultural Change: Consumption patterns may be impacted by products and marketing strategies that may not align with local cultural norms.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Quiz Team

Related Documents

Chapter 4 Business Studies PDF

More Like This

Untitled Quiz
6 questions

Untitled Quiz

AdoredHealing avatar
AdoredHealing
Untitled Quiz
37 questions

Untitled Quiz

WellReceivedSquirrel7948 avatar
WellReceivedSquirrel7948
Untitled Quiz
55 questions

Untitled Quiz

StatuesquePrimrose avatar
StatuesquePrimrose
Untitled Quiz
18 questions

Untitled Quiz

RighteousIguana avatar
RighteousIguana
Use Quizgecko on...
Browser
Open
Browser
Browser