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A co-operative society gives equal right of voting to each member on the basis of one person one vote, Moreover, each member gets equal right and opportunity to vote, contest election of executive committee, participant in management, etc. Due to such equality rights given to each member one can say that

i. (b) an artificial person created by law

ii. (a) Promoters

iii. (b) Private

iv. (c) seven

v. (a) Pre-incorporation/Preliminary contracts

• Promoter discovers the idea of business formation.
• Promoter decides aims and objects of business, amount of capital, scale/size of business.
• Drafting the ‘Memorandum of Association’ and ‘Articles of Association’.
• Drafting prospectus to invite investors.
• To appoint first directors and first subscribers of Memorandum of Association and Articles of Association,
• To enter into ‘Preliminary Contracts’ like hiring office premises, etc.
• To protect and promote the interest of the proposed company.
• Thus, promoters play important role in theformation of a company.

Democratic management:

The business of co-operative society is managed by the committee elected by the members.

• The basic element on which the co-operative democracy works is ‘One man one vote’. Here, one man or say one member may have 10,000 shares of the society and another may have only 1 share still both have the right of one vote only i.e. equal voting right. In this regard we can say that in a co-operative society it is the ‘person’ that counts and not the money he has or holds in the society. Whereas in companies a person is allowed the number of votes based on the number of shares he holds.
• Any member can contest the election of executive committee, participate in management, etc.
• Hence, we can say that the management of a co-operative society is truly democratic and also that the society is a training school of democracy where one can learn ideal principles of democracy.

1. The members of a Co-operative organisation form the general body which manages the co-operatives. This body exercises the power through annual general meetings. They elect their representatives who look after the day to day management which is collectively known as Managing Committee. 

2. ‘One member One vote’ is the principle followed by Co-operative Societies. 

3. All these denote that it follows democratic principles. 

4. Thus, Co-operative society follows democratic principles.

A person who take lead to form the company is called a “Promoter”. As per Companies Act, 2013; Section 2(69) Promoter is defined as,

• A person, who has been named in the prospectus or identified by the company in Annual Return or
• Who has control on company’s affairs directly or indirectly whether as a shareholder, director or otherwise or
• In accordance with whose advice, directions, or instructions, the Board of Directors is accustomed to act.

A person who take lead to form the company is called a “Promoter”. 

As per Companies Act, 2013; Section 2(69) Promoter is defined as.

• A person who has been named in the prospectus or identified by the company in Annual Return or 
• Who has control on company’s affairs directly or indirectly whether as a shareholder, director or otherwise or 
• In accordance with whose advice, directions, or instructions, the Board of Directors is accustomed to act.

Role of Promoters:

• To conceive (discover) the idea of forming a business.
• To decide aims and objects of business, amount of capital, scale/size of business, etc.
• Drafting the ‘Memorandum of Association’ and ‘Articles of Association’.
• Drafting Prospectus to invite investors.
• To appoint first directors and first subscribers to Memorandum of Association and Articles of Association.
• To enter into ‘Preliminary Contract’ like hiring office premises, preparing and drafting Memorandum of Association and Articles of Association.

Promoter is a person who conceives the idea of starting a business, examines the feasibility of idea, assemble various resources, prepare necessary documents and perform other activities needed to commence the business.

Functions of a promoter

1. Identification of business opportunity; 

2. Feasibility studies: the following feasibility studies may be undertaken: 

(a) technical feasibility (b) financial feasibility (c) economic feasibility 

3. Name approval; 

4. Fixing up signatories to the Memorandum of Association; 

5. Appointment of professionals; 

6. Preparation of necessary documents.

Correct option is (D) Loan clause

Promotion:

Promotion refers to the thought or idea that comes into mind for establishing a company and prepare for the same. The person(s) or partnership firm or even a Joint stock company who executes the idea is called a promoter of the company.

Points to consider by promoter:
1. Idea of promoting the company:

The promoter first need to research and assess the need of the new company. He needs to be clear whether the new company will be established for developing and selling a new product or a service, etc.

2. Primary and detailed investigation:

• Once the promoter gets clarity about the new product or service he wish to sell through the new company, he needs to conduct thorough primary as well as detailed investigation to test if the idea will work in the market.
  The idea is now to be tested on practical grounds with a strong business perspective. Various aspects such as selecting the right product and service for the business, profitability of the business, etc. are thoroughly investigated for successful implementation of the business.
• Initially a primary test and survey is done. Based on the results, detailed study and analysis is done is the market.
• Also, information regarding how much capital will be needed, how will it be raised, sourcing raw material, demand and market trend, equipment and machinery needed, land and human resources, transport facilities, power, water availability, etc. is gathered at in depth.

3. Mobilizing resources:

• The promoter needs to mobilize i.e. start deploying human and physical resources.
• The promoters enter into contracts to obtain land, raw material, machinery, services, hire employees, etc.

4. Financial arrangement:

• The promoters need to decide how and from where they will raise the finance i.e. capital for the company.
• For example, whether they should raise their own funds or obtain it by issuing shares, obtain loan, borrow, etc.

1. The shareholders are the owners of the company. The company is managed by the Board of Directors who are elected representatives of the shareholders.

2. There is separation of ownership and management because of the following reasons: 

(a) Scattered membership 

(b) Large membership 

(c) Disinterested shareholder 

(d) Heterogenous members 

(e) Separate legal entity. 

3. Thus, ownership is in the hands of shareholders and the management is with the Board of Directors who are paid employees of the company.

Departmental Organisation is financed by annual budget.

1.True

2.False

3.False

(i) In the words of Mary Parker Follet, “management is an art of getting things done through others”. Management focuses on completing the work through human resource.

(ii) It is co-ordinating of all available resources effectively and efficiently. In organisation, the activities are done by the subordinates, employees under the guidance of a manager.

(iii) A manager, though he is competent, able, has capacity, skills to perform the organizational task, it is not possible for a single manager to perform all the activities related to the said task alone.

(iv) To fulfill or accomplish the objectives and goals, he needs the help of other people, as it should be divided among all the employees, as per their skill, qualification, interest, knowledge and experience. 

(v) Thus, management is a group oriented activity.

i. (b) DIN

ii. (a) Statutory

iii. (a) Agent

iv. (a) 5

v. (c) Managing Director

vi. (c) Whole time Director

vii. (a) Manager

viii. (a) Listed company

ix. (c) Statutory

x. (c) ICSI

xi. (c) Secretarial Audit Report

Correct option is (A) Memorandum of Association

A co-operative society is a voluntary form of business where in individuals intending to set-up a business get associated for economic interests but on the basis of equality i.e. to provide equal right and opportunity to all the members.

• The prospectus is a written document giving an invitation to the public to purchase shares or debenture of the company.
• It provides all the necessary information about a company, its business, the management, financial structure, etc., of a company.
• A prospectus must be prepared very carefully and accurately.
• It should contain true and correct information and honest disclosure of facts.
• A company and all those officials can be held responsible for any mis-statement in the prospectus.
• These people have to face severe consequences.
• The shareholder can cancel the contract.
• Persons authorizing the issue of prospectus containing mis-statement are punishable with imprisonment of two years and a fine up to ₹ 5,000.
• Thus, I agree with the above statement.

i. Yes, Mr. X can state mis-statement in the prospectus.

ii.

• Civil liability (Pay compensation for loss suffered by the investor)
• Criminal liability companies or their officers will be fined or imprisoned or both.

• Co-operative societies from their profits and reserve conduct various types of welfare activities for the society.
• They arrange activities like setting-up medical camps free of charge or at very nominal rates, develop schools, dispensaries, gaiucns, etc.
• Moreover, these societies sell quality goods at fair prices.
• Hence, co-operative societies welfares the public.

Lesser administrative expenses:

• The co-operative society works on the principle of thrift i.e. wisely managing money and other resources.
• Members provide honorary services for managing the society. Moreover, management is done on an economical way without spending or spending very less on advertisements and marketing of the products.
• These things together reduces overall administrative expenses of the society.

Abridged Prospectus is issued only in case of a public offer made by a company.

Memorandum of Association contains the aims and objectives of the company.

i. Memorandum of Association

ii. Memorandum of Association

iii. Memorandum of Association

iv. Memorandum of Association

v. Memorandum of Association

i. True

ii. False

iii. True

iv. False

v. True

When political parties start interfering and influencing the societies, the freedom of doing business and member’s rights may get compromised.

Correct option is (D) Any of these

Correct option is (C) All adult members

Correct option is (A) Can suggest the Karta

The next eldest male member of the family.

1. It is a voluntary association of two or more persons with a common objective. 

2. It is formed by an agreement called Partnership deed. 

3. It is governed by Indian Partnership Act, 1932. 

4. Registration of partnership firm is optional as per Partnership Act, 1932. 

5. In Maharashtra, registration of partnership firm is made compulsory.

Correct option is (C) Efficiency of Karta

Correct option is (A) Karta

Correct option is (D) Easy transfer of share

Government Company has separate Legal entity.

Separate legal entity

As per the law, a‘company’is separate from its investors. So, it is not affected by the death or insolvency of the members. A company can be brought to an end only through liquidation procedure.

(i) Legal

(ii) Departmental Organisation

(iii) Statutory corporation

When the members lack faithfulness or discord, conflicts, selfishness and group formation occurs in the society, non-co-operation crops in co-operative societies.

Correct option is (c) Memorandum of Association

• A prospectus usually is in the form of a statement giving all material information about the company and showing its future prospectus.
• It aims at inviting investors to subscribe to its shares and debentures.
• It is a must for every public company to prepare its prospectus.
• It is through the prospectus that the prospective investors know the details of the shares offered by the company.
• Otherwise, the investors would have no idea of the shares that a public company is selling.
• All detailed information about a company like its business management, financial structure, etc., are provided in the prospectus.
• The main idea to issue a prospectus is to collect capital for the company from the general public.
• It should contain true, fair, and correct information.
• Hence, the prospectus is very important for a public company.

i. Letter of the offer must be sent to its shareholders for offering the rights issue.

ii. The prospectus is the document to be issued by the company if it wants to issue shares to the public instead of rights issues.

iii. Red Herring prospectus is called an incomplete prospectus.

i. Incorporation

ii. Promoters

iii. Preliminary contracts

iv. Certificate of Incorporation

The other family members can help the Karta in the business activities and provide their suggestions. But they cannot interfere in Karta’s works or decisions.

As the trade and commerce grew larger and larger it became difficult for the sole proprietor to handle the large business operations. Moreover, there also arose need of specialized skills and rich experience and knowledge. These factors led to the beginning of partnership.

The registration of a sole trading concern is not compulsory.

Companies involve in large scale production, provide very large employment opportunities, set-up huge industries and thus buy huge real estate, machinery, etc. Also, company pays crores of rupees as taxes.

Being an artificial person, a joint stock company has its own separate legal entity independent of its investors. This means a company can own property, enter into contracts, it can sue and can be sued by others.

Correct option is (D) Limited work capacity

After the industrial revolution there arose huge demand for various new products and machineries. It was quite impossible for proprietorship or partnership firms to raise a very huge capital with unlimited liability to meet such demands. Hence, the need of joint stock company arise.