NIOS Class 10 Business Studies Chapter 4 Cooperative Societies and Joint Stock Companies

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NIOS Class 10 Business Studies Chapter 4 Cooperative Societies and Joint Stock Companies

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Cooperative Societies and Joint Stock Companies

Chapter: 4

NIOS TEXTBOOK QUESTIONS ANSWERS

Intext Questions 4.1

Fill in the blanks with suitable word(s) in the following statements: 

(i) A co-operative society is a _______ association of individuals who come together to achieve common _______ objectives. 

Ans:- Voluntary and  Economic.

(ii) The motive of cooperative society is to provide ________ to the members. 

Ans:-  Services.

(iii) A cooperative society has separate ________ from the members. 

Ans:-  Legal entity.

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

Ans:- Mutual help.

(v) Consumers’ co-operative societies help to eliminate _______ in the process of distribution of goods. 

Ans:- Middlemen.

(vi) Apna Bazar and Kendriya Bhandar are example of _____ co-operative societies.

Ans:- Consumer.

Intext Questions 4.2

Which of the following statements about co-operative societies are true or false?

(i) Any competent person can become a member of a cooperative society, at any time. 

Ans:- True.

(ii) The liability of the members is limited. 

Ans:- True.

(iii) It can exist for a long time due to a legal entity separate from its members. 

Ans:- True.

(iv) The society is managed by one person only. 

Ans:- False.

(v) The Co-operative Societies are formed to provide service rather than maximising profit. 

Ans:- True.

(vi) Co-operative Societies are formed to provide service rather than maximising profit. 

Ans:- True.

(vii) Professional managers do not prefer to work in co-operative societies because they do not get adequate remuneration. 

Ans:- True.

(viii) The success of a cooperative society depends on the loyalty of its members, something that is neither assured nor can be enforced.

Ans:- True.

Intext Questions 4.3

Which of the following statements is True and which is False? 

(i) Legal formality is required to form a Joint Stock Company. 

Ans:- True.

(ii) The shares of a public limited company are freely transferable.

Ans:- True.

(iii) The shareholders of a Joint Stock Company have unlimited liability. 

Ans:- False.

(iv) A Joint Stock Company cannot own property on its own name.

Ans:- False.

Intext Questions 4.4

Fill in the blanks with suitable word(s) in the following statements: 

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

Ans:- Two.

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

Ans:- Private.

3. Hindustan Machine Tools is ___________ Company. 

Ans:- Government.

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

Ans:- One lakh.

Intext Questions 4.5 

Fill in the blanks with suitable word(s) in the following statements: 

(i) The liability of members of a joint stock company is limited to the extent of the ____________. 

Ans:- Face value of shares held by them.

(ii) A joint stock company form of business organisation is managed by ____________. 

Ans:- Board of directors.

(iii) The cost of formation of a company is very ____________. 

Ans:- High.

(iv) Indian Oil Corporation and ONGC are examples of ____________. 

Ans:- Indian multinational companies.

(v) The risk of loss in a company is spread over a large number of ____________.

Ans:- Members.

Intext Questions 4.6

I. Given below are some statements about Multinational Companies. 

State which of them are true and which are false: 

(i) Multinational Companies slow down the economic development of underdeveloped countries. 

Ans:- False.

(ii) Multinational Companies help to earn foreign exchange for the host countries. 

Ans:- True.

(iii) Domestic producers improve their performance because of Multinational Companies. 

Ans:- True.

(iv) Generally Multinational Companies invest money in profitable industries. 

Ans:- True. 

(v) Multinational Companies never dominate the markets of the host countries. 

Ans:- False. 

II. 

Multiple Choice Questions

(i) Cooperative societies do not have the following characteristics 

(a) Open Membership. 

(b) Separate legal entity. 

(c) Profit Motive. 

(d) Voting Power. 

Ans:- (c) Profit Motive.

(ii) Which of the following is not an example of consumer cooperative society? 

(a) Apna Bazar. 

(b) Kendriya Bhandar. 

(c) Super Bazar.

(d) Narain Group Housing Society. 

Ans:- (d) Narain Group Housing Society.

(iii) Liability of the members of a cooperative society is 

(a) Limited. 

(b) Unlimited. 

(c) Joint. 

(d) Joint & Several. 

Ans:- (a) Limited .

(iv) The success of a cooperative society depends on 

(a) Loyalty of its members. 

(b) Central Government. 

(c) State Government. 

(d) Local Self Government. 

Ans:- (a) Loyalty of its members.

(v) In a Private Limited Company, capital is contributed by: 

(a) Central Government. 

(b) Public and Government only. 

(c) Its own members only. 

(d) Issue of shares to Public only.

Ans:- (c) Its own members only.

Terminal Exercise

1. What is the meaning of cooperative society?

Ans:- The term co-operation is derived from the Latin word co-operari, where the word co means ‘with’ and operari means ‘to work’. Thus, co-operation means working together. It means those who want to work together with some common economic objective can form a society which is termed as “co-operative society”. 

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

Ans:- Consumer’s Co-operative Societies are formed to protect the interest of general consumers by making consumer goods available at a reasonable price. They purchase goods directly from the producers, this eliminates the middlemen in the process of distribution. Kendriya Bhandar, Apna Bazar and Super Bazar are examples of consumers’ co-operative societies.

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

Ans:- The two examples of consumer’s cooperative societies are Apna Bazar and Super Bazar.

The two examples of producer cooperative societies are  e APPCO and Boyanika.

4. What is meant by Thrift and Credit Society?

Ans:- Thrift and Credit Cooperative Societies are formed to provide financial support to the members. They accept deposits from members and grant them loans at reasonable rates of interest in times of need. Village Service Co-operative Society and Urban Cooperative Banks are examples of co-operative credit societies.

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

Ans:- Some of the causes of conflict and lack of motivation among members of a cooperative society are discussed below:

(i) Lack of Motive: The members do not work with full zeal and devotion as there is no profit motive. 

(ii) Limited Capital: The amount of capital that a cooperative society can raise from its members is very limited because the membership is generally confined to a particular section of the society. 

(iii) Problems in Management: The management of a cooperative may not be particularly competent, because a cooperative generally offers only low scales of remuneration to the staff employed. 

(iv) Lack of Commitment: The success of a cooperative depends on the loyalty of its members, something that is neither assured nor can be enforced. 

(v) Lack of Cooperation: The co-operative societies are established with the objective of mutual cooperation. But it is generally seen that there is a lot of friction between the members because of personality differences, ego clashes, etc. The selfish attitude of members may sometimes being an end to society.

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

Ans:- 

Basis	Producers co-operative society’	Marketing cooperative society’
1. Meaning	These societies are formed to protect the interest of producers who are basically small in size, by making available items of their needs for production like raw materials, tools and equipment and machinery, etc.  Handloom societies like APPCO, Boyanika, Haryana Handloom, etc., are examples of producers’ co-operative societies.	These are cooperatives societies of small producers and manufactures who find it difficult to sell their products individually. These societies collect the products from the individual members and take the responsibility of selling those products in the market.  Gujarat Cooperative Milk Marketing Federation that sells AMUL milk products is an example of a marketing co-operative society.
2. Objective	To serve the members and customers by supplying household consumption goods required by them at their doorsteps.	A societal marketing concept builds trust and increases customer loyalty by demonstrating a broader commitment to addressing social welfare.

7. What is meant by a Joint Stock Company?

Ans:- A joint-stock company is a business owned by its shareholders, who can buy and sell shares freely. Historically, the shareholders of a joint-stock company could bear unlimited liability for debts owed by the company.

8. State the advantages of Joint Stock Company.

Ans:- There are many advantages which the company form of business organisation enjoys over other form of business organisations some of them are as follows: 

(i) Limited Liability: The liability of a shareholder is limited. The risk of loss is limited to the unpaid amount on the face value of shares held.

(ii) Economies of large-scale operation: A joint-stock company can undertake business on a large scale. As a result, it can derive all the advantages of large-scale production.

(iii) Transferability of Shares: The shares of a public limited company can be freely transferred by the members without the consent of other members. 

(iv) Diffused Risk: The risk of loss in a company is spread over a large number of members. 

(v) Economic development: The framework of the joint stock company was only obtainable by specific statute or royal charter and was a cumbersome and expensive process, best suited to major projects. The shareholders would have a direct incentive to monitor the company’s solvency and therefore its progress.

9. State the meaning of Multinational Company.

Ans:- It is a company which carries on business not only in the country of its incorporation but also in one or more other countries. Such a company may produce goods or arrange services in one or more countries and sell these in the same or other countries.

The Multinational Companies enjoy several advantages by way of huge earnings due to large-scale production and distribution activities across national borders.

10. Describe any four characteristics of a Joint Stock Company.

Ans:-