Q1 :The structure in which there is separation of ownership and management is called Q5 :The maximum number of partners allowed in the banking business are Q2 :The karta in Joint Hindu family business has Q4 :Compare the status of a minor in a Joint Hindu Family Business with that in a partnership firm. Free PDF Download of CBSE Class 10 Social Science Economics Chapter 3 Money and Credit Multiple Choice Questions with Answers. His wife woke him up at 6 a.m,because she felt an earthquake. MCQ in Human Resource Management with Answers. 5. ‘The Undistributed Profits’ or ‘retained earnings’ are reinvested for further growth of the society. Merits of Cooperative Societies 2. These limitations include unlimited liability, limited resources, possibility of conflicts and lack of continuity. Download Non-Cooperation Movement notes PDF for IAS Exam. The cooperative society is active in all countries worldwide and is represented in all the sectors including agriculture, food, finance, healthcare, etc. On the other hand, if direct personal contact is not required, then a partnership or a company form of business is more suitable. Consequently, cooperative societies often lack efficiency. Answer : The fundamental objective of every organisation is. It describes about the Books of accounts and register to be maintained, Cash limits, Payment beyond certain Limit by Cheques, Finalization of Accounts, etc. Hence, the correct answer is option (b). A joint stock company is owned by individuals known as shareholders. Name the lesson. Therefore it need not depend on outsider’s funds to meet its future financial requirements. It can utilize the funds available in the general reserve. In this case, the minor enjoys an equal ownership right over the inherited property as the other members of the family. Then the family rushed out of the house. Society and Urban Cooperative Banks are examples of co-operative credit society. Time Limit: 30 minutes. (e) Internet cafe (d) Joint liability Therefore, a cooperative society exemplifies a secularist system. Cooperative societies encourage the habit of savings and thrift among their members. Why? Limited Resources – Cooperative society generally suffers due to scarcity of the resources, although each of the ten founder members of the cooperative society are expected to invest capital. 4. All operations, management and activities of the business are handled by this individual. Hence, the correct answer is option (b). However, unlike human beings, a company, as an artificial person, cannot breathe or talk, cannot sign its documents and cannot negotiate with its customers. Q5 :Distinguish between a Joint Hindu family business and partnership. 8. (c) Housing cooperative (b) Unlimited liability Introduction A cooperative society is not a new concept. Mahatma Gandhi was the main force behind the non-cooperation movement. 1.6 Significance Of The Study The study examines the factors affecting the performance of cooperatives in Kaduna state. Thus, being the sole owner of the business, he or she becomes the single recipient of all the profits of the business. The organisational structure in which there is separation of ownership and management is called a company. (b) Sleeping partner Therefore it need not depend on outsider’s funds to meet its future financial requirements. Answer : SCOPE AND LIMITATION OF STUDY. The fundamental objective of every organisation is. (b) Partnership (d) Farmers’ cooperative societies: Such societies are formed by small farmers who pool their resources to reap the benefits associated with large-scale operations. Answer : The karta is responsible for the management and control of the business. (b) Joint Hindu family business Q2 :Why is partnership considered by some to be a relatively unpopular form of business ownership? A cooperative society has to transfer at-least one-fourth of its profits to general reserve. Hence, the correct answer is option (c). This implies that a company, as a separate legal entity, cannot come to an end by itself and will continue to operate forever. Salesman Posts Vacancy in MP Cooperative … (a) Producer’s cooperative Explain the merits and limitations of partnership. Cooperative societies usually suffer from the following limitations. MCQ Questions for Class 10 Social Science with Answers was Prepared Based on Latest Exam Pattern. As a result, anxiety, burden and stress of the individual partners are shared among all the partners, which reduces the burden on a single partner. Q2 :For which of the following types of business do you think a partnership form of organisation would be more suitable, and why? Limitations of Cooperative Societies Capital contributions in a cooperative society are from the members with limited means. Answer : Important Dates for Cooperative Society Accounts, Audit & Returns. (a) Grocery store A few of these disadvantages are listed below. Co-operative Farming Society: ... Death, insolvency or lunacy of a member does not affect the existence of a society. This 38 th set contains Economy questions from UPSC’s Geoscientist exam 2020 (conducted on 19 th Jan,2020), IES Engineers 2020 (5 th Jan, 2020) and CDS-i-2020 (conducted on 2 nd Feb 2020). CHAPTER TWO 2.0 LITERATURE REVIEW 2.1 Introduction: Cooperative Society 2.2 The Nature of Agricultural Cooperatives 2.3 Problems Affecting the Effectiveness of Cooperative Societies 2.4 Prospects of Agricultural Cooperative. A private company enjoys certain exemptions or privileges which are often not available to a public company. Hence, the death, insolvency, retirement, lunacy, etc., of the members do not affect the perpetual existence of a cooperative society. The following are the factors that determine the choice of a business organisation. (a) Perpetual succession The word ‘cooperative’ means an organisation in which the stakeholders work with one another. A minor is not legally competent to enter into any legal contracts, and therefore, he or she cannot be considered a partner. If a businessperson aims to have direct control over all the business operations, then sole proprietorship may be considered appropriate. (c) Nominal partner MCQ Questions for Class 10 Social Science with Answers was Prepared Based on Latest Exam Pattern. The following are a few important benefits that a businessperson enjoys by being a sole proprietor. It can be difficult to progress through the process rapidly. The head of a joint Hindu family business is called the karta. (c) A non-registered partnership firm cannot enforce its claims against a third party in a court. (d) Artificial person A common seal is the official signature of a company that is used by its board of directors in almost all the important official documents. Only recently worker cooperatives started gaining ground among working class citizens, most of who find it difficult to save part of their salaries/wages for the rainy day. Reply. Criminal elements are not entertained. Salesman Posts Jobs Career Notification Advertisement on September 2018 cooperatives.mp.gov.in Career, Latest Job Opening at MP Cooperative Society, Madhya Pradesh Recruitment 2018 Apply Online Application Form Download, Latest Jobs Notification for 3629 Jr. The elections in such societies are governed by the principle of ‘one member, one vote’. In a company, management and ownership lie in the hands of different individuals. When individuals voluntarily join together to protect and promote their common interests, they form a cooperative society. MCQs- IR 1. (a) Twenty All the partners jointly manage and control the firm. It prevails in all the countries, this is almost a universal concept. (b) One man one vote The main benefits claimed by different kinds of cooperative societies, in brief, are as under; Advantages of Cooperative Society. Zumunchi multipurpose cooperative society, air force road, makera. (c) Direct incentive: A sole proprietor is the sole bearer of all types of risks associated with the business and at the same time is the single recipient of all the profits and gains earned from the business. He is the eldest member of the family and has unlimited liabilities along with absolute decision-making powers. Living in a housing society is an asset when it comes to tax deductions. Although the basic aim of forming a cooperative society is to develop a system of mutual help and cooperation among its members, yet the feeling of cooperation does not remain for long. Due to limited financial resources, it is generally not in a position to employ and retain competent professional managerial personnel. This principle prevents the dominance of the richer members (who may own a higher number of shares) in the decision-making process. (c) Karta Similarly, a partnership firm can be shut down at any time with the mutual consent of all the partners. Answer : (a) Proprietor Answer : A _____ cooperative does not restrict the price of its shares, while a _____ does. (c) Possibility of conflicts: In a partnership firm, the power of decision making is shared among the partners. (b) Limited managerial abilities: A sole proprietor manages all the core functions such as purchasing, selling and planning. (a) Easy formation and closure: A partnership firm involves an agreement (either oral or written) between two or more partners. Thus, the amount of capital available to a sole proprietor is limited, which often prevents him or her from expanding the business. now what is the turnover limit for Society GST registration. Sole Proprietorship; Partnership ; None of these; Company; Correct Answer: Company. Answer : (b) Quick decision making: A sole proprietor enjoys complete control over the business. Once the registration is complete, the cooperative society is granted the status of a separate legal entity. (a) Limited Capital: Most of the cooperative societies suffer from lack of capital. (d) Share A cooperative society is a group of individuals who have specific common needs.It is an economic enterprise,the purpose of which is to improve the economic status of owners or members.Most cooperative societies offer their products to their members and others do not serve non-members. Academia.edu is a platform for academics to share research papers. This does not mean that a cooperative society does not earn profits or a company does not render service to society. Q.13) What is the limit of members in case of a Private Company? (ii) maximum nuber of new partners who can be admitted in the firm Procedures for registrati on of cooperative society is simpl e with nominal fees. Q1 :What do you understand by a sole proprietorship firm? A company is owned by its shareholders, while its management is handled by a group of elected persons known as the board of directors. Ignesious was manager of a cooperative society in Katchal. (a) One share one vote (b) Medical store (a) Ease in formation and closure: There are hardly any legal formalities that are required to be fulfilled for setting up a sole proprietorship firm. Explain. Q12 :A partner whose association with the firm is unknown to the general public is called This makes the decision-making process in a partnership firm comparatively more balanced than in any other form of business ownership. Farmers developed cooperative organizations to limit the power of rail companies. However, socialists cherished different visions of the future. (d) Multiple votes Mitron, my [T25] series contains 25 Mock MCQ sets primarily aimed at UPSC IAS/IPS Civil Service exam aspirants. Incidentally, cooperative despite its old age is not very popular in Nigeria. The State Legislature shall provide for the reservation of one seat for the Scheduled Castes or the Scheduled Tribes and two seats for women on the board of every co-operative society having members from such a category of persons. MCQ in Human Resource Management with Answers. ADVERTISEMENTS: Advantages. Social Service: The basic philosophy of cooperatives is self-help and mutual help. Encourages thrift. However, if a proprietor wants to deal in drugs and liquor, then he or she must to acquire a licence. (a) Unlimited liability: In a partnership, all the partners have unlimited liability. (b) Common seal A cooperative society form of business organisation suffers from certain limitations as outlined below: 1. Answer : These rules include submission and auditing of accounts. The shareholders elect the board of directors as the chief managing body of the company and grant it indirect control over the business. We have provided Forms of Business Organisation Class 11 Business Studies MCQs Questions with Answers to help students understand … In contrast, a public company has to seek permission from the government before advancing loans to its directors. As per the Partnership Act, 1923, no minor can be a partner in a partnership firm. Answer A) Societal. 5. (a) Grocery store Vacancy in MP Cooperative Society Recruitment 2018 Apply Online cooperatives.mp.gov.in 3629 Jr. Hence, the correct answer is option (c). (c) Direct incentive: A sole proprietor is the sole bearer of all types of risks associated with the business and, at the same time, is the single recipient of all the profits and gains earned in the business. Since the karta has complete control over the business, his liability is unlimited. Which of the following is usually not an objective of industrial relations? Hence, the correct answer is option (d). The groups should contain high achievers and low achievers. The capital of a company is divided into a number of parts, each one of which is called a share. This implies that all members have equal voting rights irrespective of the amount of capital they have contributed to the society. 4. It will have continuous existence. Cooperative societies are operative in various sectors like consumer, industrial, services, marketing, etc. Students can solve NCERT Class 10 Social Science Money and Credit MCQs with Answers to know their preparation level. All the individuals who are going to appear in the PPSC-CSS Inspector Cooperative Society jobs written test, can prepare for it in the best possible way by using our free online testing service. Hence, the death, insolvency, retirement, lunacy, etc., of the members do not affect the perpetual existence of a cooperative society. (d) Secret partner A cooperative society is a voluntary association of persons who get together to protect their economic interests. Solved examples with detailed answer description, explanation are given and it would be easy to understand Thus, a cooperative society is a voluntary association of individuals who join together to protect or promote their common interests. This quiz and worksheet combination will help you ensure that you understand how these organizations work. The cooperative form of organisation suffers from the following limitations: (i) Limited resources: Resources of a cooperative society consists of capital contributions of the members with limited means. 15. (b) Continued existence: A cooperative society is a stable form of organisation as it enjoys the status of a separate legal entity that is considered distinct from its members. However, if a proprietor is dealing in drugs and liquor products, then a licence has to be acquired. The cooperatives, being a special form of business ownership, enjoy certain advantages which are no availed of by other forms of organizations. Solution: This type of entity limits the owner's liability to their ownership stake and restricts shareholders from publicly trading shares. A cooperative society is not a new concept. Cooperative learning groups can consist of two to five students, but groups of three to four are also effective. Cooperatives mostpatronized depend on the patronage of their ownby members members and not from non-members. Q3 :Explain the following terms in brief (b) Balanced decision making: In a partnership firm, all the decisions related to the business are taken collectively by all the partners. Cooperatives are organizations of individuals who pursue a common economic goal. The Role of Cooperative Societies in Economic Development The problem is that many people do not know much about cooperative, its mechanisms and role in economic development, and how it is considered in the world as a Third Force, an alternative and … (b) Limited resources: A partnership firm faces limited availability of finance, because of the restrictions imposed on the following fronts: Thus, it is a favourable form of organisation for small businesses. This means that if a person behaves in a manner that makes third parties consider this individual as one of the actual partners, then he or she is regarded as a ‘partner by estoppel’. Similarly, a partner of a non-registered firm cannot file a case against his or her co-partners or the firm. In 1904, Cooperative Credit Societies Act, was enacted. (f) Chartered accountancy firm (a) Separate legal entity: The registration of a cooperative society is compulsory under the Cooperative Societies Act, 1912. (a) Partnership Thus, as in a democracy, a cooperative society treats all its members equally and provides equal rights to its members. (a) Grocery store (b) Common seal: A company is an artificial entity that is created under the law. The following are the advantages of the Co-operative Society: 1. Article Shared By. In other businesses, the maximum number of partners allowed is 20. Answer : A person can be regarded as a ‘partner by estoppel’, if he or she through his/her actions or behaviour, leaves an impression on third parties that he or she is a partner in a particular firm. Mitron, my [T25] series contains 25 Mock MCQ sets primarily aimed at UPSC IAS/IPS Civil Service exam aspirants. Q7 :The capital of a company is divided into number of parts each one of which are called A) New Fiscal deficit policy B) IT parks initiated in Bangalore C) Globalization policy, liberalization was accepted by India D) Policies of cooperative societies changed 3. Q.14) In case of _____ Registration is compulsory. (b) Agricultural credit societies must be with unlimited liability. It is an age long established fact that nobody can escape poverty without a savings habit. (d) Internet cafe Cooperative societies are classified into the following six types. The low rate of dividend offered on investment also acts as a deterrent in attracting membership or more capital from the members. Social Service: The basic philosophy of cooperatives is self-help and mutual help. Q3 :Why is it important to choose an appropriate form of organisation? Though a cooperative society is not covered u/s 115-O i.e. In contrast, like human beings, a company does have its own life that is truly independent of the life of its members. Continuous existence: The society will not be affected by the death or insolvency of a member. Internal Finance – Cooperative societies act limits the amount of divided that can be declared by the society to 6.25% of capital. The differences in these qualities may possibly lead to conflicts among the partners. (e) Internet cafe Your email address will not be published. This 38 th set contains Economy questions from UPSC’s Geoscientist exam 2020 (conducted on 19 th Jan,2020), IES Engineers 2020 (5 th Jan, 2020) and CDS-i-2020 (conducted on 2 nd Feb 2020). In the event of death, insanity, bankruptcy or physical ailment of a sole proprietor, the life of the business is adversely affected. (c) Interest ADVERTISEMENTS: 2. 2. This is because these businesses require a lower capital and lesser managerial ability to handle the day-to-day operations. Answer : It, therefore, has to depend on its own members who generally lack in skill and experience. (b) Government bodies The year 1991 is famous for. Features of Cooperative Societies We know that in a partnership form of organisation, there are two or more persons who work together, pool their respective funds and finally share the profits earned (or bear the losses incurred). Limitations of Co-operative Society. (c) Karta: The term karta is used for the head of a joint Hindu family who runs a family business. As a result, the life of a cooperative society remains unaffected by the death, insolvency or insanity of its members. A) societal B) Operational C) Functional D) none of the above. Ignesious carefully took his television set off its table and put it down on the ground so that it would not fall and break. Answer : Maximum: 10 for the banking business and 20 for other businesses. Particularly, you will get here special notes of physics that will be immensely useful to both students and teachers. Answer : Reply. Hence, the correct answer is option (c). A) societal B) Operational C) Functional D) none of the above. Which of the following developments best explains a cause of the historical process described in the excerpt? (a) Legal consultancy This is because, in a sole proprietorship, the business is owned, managed and controlled by a single individual known as the sole proprietor. Hence, the correct answer is option (b). To protect the interest of weaker sections, the co-operative society is formed. 2 Marks for correct answer; -0.66 marks for wrong answers. Also, the co-opted members shall not have the right to vote in any election of the co-operative society or be eligible to be elected as office bearers of the board. (c) No vote Thus, this direct link between efforts and rewards motivates the sole proprietor to operate the business efficiency and effectively. Hitherto, cooperative societies were thought to be associations meant only for farmers, small traders and other very low-income earners. (d) Artificial person: By the term artificial person, we mean that a company is created as a separate legal entity under the law and is a juristic person. Ease of formation: Since it is a voluntary organisation it is easy to form by any ten members. This further depends on their respective levels of skills, capabilities and foresightedness. (a) Options to choose among various business forms: As there exist numerous forms of business organisations such as sole proprietorship, partnership, cooperative society and company, the choice of an appropriate business organisation is important, because each business form has its own merits and demerits. Answer : (c) Degree and specialisation of managerial abilities: If the business operations are large and require specialised and skilled professionals for managing them, then a company form of business may be selected. Limitations of Sole Proprietorship: Q6 :Despite limitations of size and resources, many people continue to prefer sole proprietorship over other forms of organisation? The status of a minor in a Joint Hindu Family differs from that in a partnership firm. Short answersmultiple choice questions : Solutions of Questions on Page Number : 52 These societies provide its members with easy repayment schemes through which the cost of the houses can be repaid in form of installments. (a) Excessive government control: Cooperative societies have to follow certain rules and regulations as imposed on them by the cooperative departments of the state government concerned. A cooperative society has a separate legal entity. Answer : A sole proprietorship refers to a form of business organisation in which an individual is the sole owner of the business. (c) Long-term growth prospects: The growth prospects of each type of business form are different. It can enter into agreements with others and can purchase or sell properties in its own name. (a) Limited capital: The financial resources that are available to a sole proprietor are limited merely to this person’s personal savings and borrowings that can be raised from relatives and friends. This makes decision making quick and easy. corporate, nonprofit. (d) All business organisations Hence, the sole proprietorship form of business is more suitable for the four business types mentioned above. December 22, 2020 at 6:19 pm TheSod says: I am a service provider to residential Society as Housekeeping, Securities, Lift AMC, Fire AMC so can i apply GST for providing Services? (d) Flexibility in operations: A sole proprietorship firm is highly flexible in operations. They are also entitled to a share in the profits and losses of the business and have unlimited liabilities. These Objectives are important for the competitive exams held by PPSC for seats of Assistant Registrar Cooperative Societies and Inspector Cooperative Societies. (a) Nature of business activity: Any individual first needs to decide upon the nature or kind of business activity that he or she desires to undertake. Q4 :The board of directors of a joint stock company is elected by The first thing cooperative societies do to individual members is development of savings culture. In case the business type requires direct personal contact with customers, then the sole proprietorship form of business proves beneficial. Although the basic aim of forming a cooperative society is to develop a system of mutual help and cooperation among its members, yet the feeling of cooperation does not remain for long. Such a partner (by estoppel) is actually not a partner, as he or she neither contributes any capital to the firm nor actively participates in the operations of the firm and is not entitled to any share in the firm’s profits or losses. These common features enhance the effectiveness of cooperative learning groups. Hence, a partnership is the most suitable form of business for the two businesses mentioned above. (c) Sole proprietorship not required to pay tax on distributed profit like domestic companies, TDS provision for dividends u/s 194 is not applicable. They may not be well equipped with the skills required to handle the managerial functions effectively. 11. (b) Quick decision making: A sole proprietor enjoys complete control over the business, facilitating quick and easy decision making. The board of directors in turn appoints the top officials for managing the day-to-day operations of the business. A cooperative society is managed by an elected body known as the managing committee. (d) Credit cooperative Answer : (a) Sole proprietorship (a) Dividend free market, socialist. Answer : Students can solve NCERT Class 10 Social Science Money and Credit MCQs with Answers to know their preparation level. A) Money B) Services C) Entities D) Social Service 2. (c) Company (c) No restriction on advancing loans to the directors: In the case of a private company, there is no restriction on the amount of loans that can be granted to the directors. Since you are considered a homeowner, you can deduct your portion of real estate/mortgage tax paid by the society. Q9 :What is meant by ‘partner by estoppel’? a. Connectedness b. Also, because of limited resources, a sole proprietor may not be able to employ specialised employees to handle specific business operations. Insanity of its profits to general reserve from expanding the business environment Agricultural commodities case, life... A higher number of shares ) in case of _____ registration is compulsory adapt to., all the business, his liability is unlimited of better and advanced inputs at low rates to farmers:. Business organisation with Answers was Prepared based on the ground so that it would not fall break! 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