1.

Define joint stock company

A company or association consisting of individuals organized to conduct a
business for gain and having a joint stock of capital represented by shares
owned individually by the members and transferable without the consent of
the group.

2. Explain the objectives of state enterprise

• To check the information of monopolies
• The objective of state enterprise is to provide various necessities like
electricity, coal, gas, transport and water supply to the State at a
cheaper rate.
• They are set up to promote and protect small scale enterprise.
• They are set up to avoid the concentration of economic power.
• They are set up to promote self-reliance in strategic sectors of national
economy.
• They are set up to establish a socialistic pattern of society. The
establishment of a strong State sector is a must for the equal
distribution of wealth.
• They are set up to increase the employment and to reduce the regional
imbalances.
• They are set up to exploit the natural resources. For example, Oil and
Natural Gas Commission in India spends huge amounts for finding ourt
new sources of oil and gas.
• They are set up to take over the sick units.
• State sector aims at providing goods and services at reasonable rates
so private sector will also sell goods on the same rates.
3. What Is Co-Operative Society?

A co-operative society is an association of individuals who voluntarily pool

their resources and carry on the business for their own welfare and not for
a profit seeking business. It is democratic form of organization in which the
consumers are the owners of the business. From manager to clerk all are
the owners of the business and all the management is in their hands. In this
organization capitalist is not involved.

4. Explain the Various Kind of Share Capital.

Share capital can be categorised in authorized share capital, issued share
capital, subscribed share capital, called up share capital and paid up share
capital.
• Authorized share capital:
Authorized share capital refers to the total capital that a company is
authorized to accept from investors by issuing shares. In simple terms, a
company cannot raise capital more than its authorized capital.It represents
the capital with which a company is registered that’s why it is also known as
‘registered capital’.
• Issued share capital:
It represents that part of total authorized share capital which has been
issued by a company for subscription by investors. Usually, companies do
not issue all of their shares for control purpose. Thus, the part which is
issued represents the issued share capital.
• Subscribed share capital:
It refers to that part of issued share capital, which has been subscribed by
investors. It means when a company issues shares to raise capital, it may or
may not receive subscriptions for all of its shares. The part of issued share
capital for which subscription has been received is known as subscribed
share capital. So subscribed share capital can be equal to subscribed share
capital but not more than that.
• Called up share capital:
A company collects the full amount of share price in more than one lot. The
part of subscribed share capital which has been asked for payment
represents called up share capital.
• Paid up share capital:
It represents that part of called up share capital which has been paid by
investors.
Paid up capital = Called up capital – Call in arrears.
• Redeemable Capital:
A Company Can Obtain Redeemable Capital by Issue of Participation Term
Certificates, Musharika Certificate, Term Finance Certificate etc.

5. Define Shareholders
A shareholder is any person, company or other institution that owns at least
one share of a company’s stock. Because shareholders are a company's
owners, they reap the benefits of the company's successes in the form of
 increased stock valuation. If the company does poorly, however,
shareholders can lose money if the price of its stock declines.
6. Discuss The Classification of Partnership Business:
1 . A General Partnership
An association of two or more persons that carry on as the co-owners of a
business in order to generate a profit. The default rule is equality between all
members and the only way to change this is through a formal writing. Each
partner possesses an equal voice in management and the authority to act as
agent for the partnership. Each partner can be held liable for all debts of the
partnership, and for torts committed by other partners within the course of the
partnership’s business.
2. A Limited Partnership
A partnership formed by two or more person having one or more general
partners and one or more limited partners. A limited partner has no voice in the
active management of the Limited Partnership, which is conducted by the
general partner(s). Every limited partner’s liability is limited to the capital he has
contributed to the partnership.
3. Limited Liability Partnership
Each partner has equal management rights and is an agent for the business. Only
the LLP is liable for business obligations. All partners are liable for their own
tortuous conduct and for those they supervise.

7. Who Can’t be Partner?

The word ‘person’ in section four of partnership act Contemplates only Natural
Artificial i. e., Legal Person. Therefore only individuals or companies can be
partners. A firm is not person and as such is not entitled to enter into partnership
with another firm or Hindu undivided family or an individuals.

8. Discuss the field of state enterprise.

1. Establishing heavy and basic industries: It becomes difficult for the private
industries to invest such huge amount in the heavy and basic industry. But
these industries are very much needed for economic development. State
 enterprise plays a big role in establishing steel industry, the industry of
mechanical instrument, Airplane, Oil Refining etc.
2. Establishing State welfare industries: The major field of state enterprise is
to establish State welfare industries in a country. The industries which are
ensuring water and electricity supply, developing telecommunication
systems, ensuring sewerage systems, supplying gas etc. needed
government support to establish and conduct activities.
3. Establishing defense industry: In modem world defense equipment as
arms bombs, fighter, tanker, cannon etc are always under the control of
the government.
4. Industry for confidential work: Government initiative is necessary in case
of industry where house, money, important government papers, or even
maps will be published.
5. Currency control and banking systems: The prime of the government is to
regulate the money and the capital market central bank does many things
like controlling the standard of money value reducing inflation and overall
controls of loans and others financial activities.
6. Control of harmful products: Products like alcohol, acid, and others
chemical products which are harmful to society and human life need to
keep under the supervision of the government.
7. Natural resources-based industries: The responsibility of using natural
resources properly and taking care of them is lying on government hand.
So the organizations based on natural resources should be established
under government supervision.

9. Describe the Features of State Enterprise

The main features of State enterprises as distinguished from private enterprises
are as follows:

1) State enterprises are owned and managed by the government or agencies set
up by the government.

2) The whole or major part of the capital required for the State enterprises is
provided by government.

3) A State enterprise can be organised as a departmental undertaking or as a

statutory corporation or as a government company.

4) These are governed by State policies laid down by the government in the State
interest and are not entirely guided by profit motive.
5) Their objectives are laid down in conformity with the development plans.
They are accountable to the Parliament or state legislature for their
performance and fulfillment of objectives.

10.Describe the Basic Feature of Business:

Features of business are discussed in following points :-
1. Exchange of goods and services
All business activities are directly or indirectly concerned with the exchange of
goods or services for money or money's worth.
2. Deals in numerous transactions
In business, the exchange of goods and services is a regular feature. A
businessman regularly deals in a number of transactions and not just one or two
transactions.
3. Profit is the main Objective
The business is carried on with the intention of earning a profit. The profit is a
reward for the services of a businessman.
4. Business skills for economic success
Anyone cannot run a business. To be a good businessman, one needs to have
good business qualities and skills. A businessman needs experience and skill to
run a business.
5. Risks and Uncertainties
Business is subject to risks and uncertainties. Some risks, such as risks of loss due
to fire and theft can be insured. There are also uncertainties, such as loss due to
change in demand or fall in price cannot be insured and must be borne by the
businessman.
6. Buyer and Seller
Every business transaction has minimum two parties that is a buyer and a seller.
Business is nothing but a contract or an agreement between buyer and seller.
7. Connected with production
Business activity may be connected with production of goods or services. In this
case, it is called as industrial activity. The industry may be primary or secondary.
8. Marketing and Distribution of goods
Business activity may be concerned with marketing or distribution of goods in
which case it is called as commercial activity.
9. Deals in goods and services
In business there has to be dealings in goods and service.
Goods may be divided into following two categories :-
Consumer goods : Goods which are used by final consumer for consumption are
called consumer goods e.g. T.V., Soaps, etc.
Producer goods : Goods used by producer for further production are called
producers goods e.g. Machinery, equipments, etc. Services are intangible but
can be exchanged for value like providing transport, warehousing and insurance
services, etc.
10. To Satisfy human wants
The businessman also desires to satisfy human wants through conduct of
business. By producing and supplying various commodities, businessmen try to
promote consumer's satisfaction.
11.Social obligations
Modern business is service oriented. Modern businessmen are conscious of
their social responsibility. Today's business is service-oriented rather than profit-
oriented.
11. Show the importance of business organization:
1. Distribution:
Another benefit of business organization is that it solves the problems of
marketing and distribution like buying, selling, transporting, storage and
grading, etc.
2. Feedback:
An organization makes possible to take decisions about production after getting
the feedback from markets.
3. Financial management:
It also guides the businessman that how he should meet his financial needs
which is very beneficial for marking progress in business.
4. Fixing of Responsibilities:
It also fixes the responsibilities of each individual. It introduces the scheme of
internal check. In this way chances of errors and fraud are reduced.

5. Minimum cost:
It helps in attaining the goals and objectives of minimum cost in the business.
6. Minimum wastage:
It reduces the wastage of raw material and other expenditures. In this way the
rate of profit is increase.
7. Product growth:
Business organization is very useful for the product growth. It increase the
efficiency of labor.
8. Quick decision:
Business organization makes it makes it easy to take quick decisions.
9. Recognition problems:
Business organization makes it easy to recognize the problems in business and
their solutions.