LARGE SCALE BUSINESS ORGANISATIONS
I. Fill in the blanks with appropriate words in the following
1.The formation of co-operative societies is regulated as per The Indian Co-operative Act of ___________
2.The first co-operative society in the world was started by
____ in _____________(country).
3.The maximum number of members in cooperative
societies is _____________
4. The co-operative societies come into existence after receiving _________ from ___________
5. The first co-operative society was stated in Karnataka at _________
6. The first stage of the formation a Joint stock company is _________
7.The most important documents required to start Joint companies are __________ and ____________
8.The multinational companies were first started in
9.The examples of multinational Companies with Indian origin are ____________ and ______________
10.The first share market was started in India at _________
Ans: (1) 1912, (2) Robert Owen, England (3) ten
(4) application, promoters (5) Kanaginahala in Gadag district (6) promotion (7) Memorandum of Association; Articles of association (8) USA (9) WIPRO, INFOSYS.
II. Answer the following questions:
1. Give four examples of public utility service companies.
Ans: Public Utilities are government undertaking but they are established to provide essential products or services to the Public. They do not intend to earn profits. Some of the public utility services are cooking gas, water, electricity, railways, posts, telegraph, etc.
2. Mention any six features or characteristics of cooperative Societies.
Ans: The features or characteristics of co-operative societies are follows:
(1) They are voluntary organizations
(2) The membership is open to all adults irrespective of
caste, religion, creed and gender.
(3) There is no limit for maximum membership.
(4) There is democratic, management. All the members attend the General Body Meeting and each member has one vote irrespective of capital invested (not less than 6.25%). Profit is distributed equally among all the members.
(5) They are registered organizations with government control.
(6) One portion of the profit is transferred to general fund.
3.Mention the different types of co-operative societies.
Ans: (1) Credit Co-operative societies
(2) Marketing Co-operative societies
(3) Producers Co-operative societies
(4) Consumers Co-operative societies
(5) Farmers Co-operative societies
(6) House building Co-operative societies
(7) Co-operative societies for different services such as -supply of drinking water, improvement of education,
4. List out the merits and demerits of co-operative societies.
Ans: Merits of Co-operative Societies: (1) It is easy to form
Co-operative societies. (2) There is no need for heavy
capitaI. (3) AII the members have equaled right and
responsibilities. (4) It runs on democratic principle. (5) Each member has one vote. (6) The liability of the members is limited. (7) They help the members to develop thrift (savings). (8) They are golden medium between capitalism and socialism.
Demerits of Co-operative Societies: (1) The societies have
limited capital resources, so large scale business is not
possible, (2) It is very difficult to get suitable staff. (3) There are chances of mismanagement and misuse of money, corruption and favoritism.
5. Which are the stages to formulate Joint Stock Companies?
Ans: The stages to formulate Joint Stock Companies are as
follows: (1) Promotion (2) Registration (3) Capital
subscription (4) Commencement of business
6.Mention the advantages of Joint stock companies.
Ans: The advantages of Joint Stock Companies are as follows:
(1) The liability of share is limited.
(2) There is no limit for share holders in the public limited
companies; hence there is a possibility of raising more
(3) The shares in public limited companies are freely
transferable. It encourages the public to come forward
or invest their money in companies.
(4) A Public Joint Stock company has a perpetual succession. The death or insolvency of any director or member does not lead to the dissolution of the company.
(5) It is possible to run large scale business.
(6) Large scale production helps for goods to be produced
at lower cost and can sell at competitive prices.
(7) The public limited companies provide employment to a large number of people.
(8) The companies contribute to the economic development of a nation by paying rates, taxes and duties to the government.
(9) Joint Stock companies help a country to earn foreign
7.What 'are the advantages of multinational companies to
Ans: The advantages of multinational companies to home country are as follows
(1) They obtain raw materials from host countries.
(2) They may also obtain the technological and administrative skills from the host countries.
(3) They export raw materials and finished products to host countries thus their profit is more.
(4) It is possible to earn profit, royalty and through administrative agreement with host countries.
(5) They create more employment opportunities in the home country.
8.What are the important functions of stock exchanges?
Ans: The capital of a joint-stock company is divided into small
units called shares. The joint stock companies can also raise capital through issue of debentures. The share or debenture holders can sell and buy these shares and debentures at any time. For this purpose Stock exchanges are established. In India the first share market was started in 1875 at Mumbai and even today, it is one of the prestigious stock markets in the world. The other stock exchanges are secondary share markets. Only the shares and debentures of listed out Joint stock companies can enter into these stock exchange facilities to carry out their business through electronic media. All the stock exchanges are controlled by a Board called Securities Exchange Board of India (SEBI).