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The demerits of Joint Stock Company are as follows:

1. Rigid Formation : The formation of a joint stock company is lengthy, difficult and time consuming. There are many legal formalities for starting business. Promoters have to prepare documents like Articles of Association, Memorandum of Association, etc. A private company has to go through two stages in formation. A public company has to go through four stages in formation.

2. Delay in Decision Making Process : In company form of organization no single individual can make a policy decision. All important decisions are taken by Board of Directors. Decision taking process is time consuming. Business may lose opportunities because of delay in decision making. 

3. Lack of Secrecy : The management of companies remain in the hands of many persons. Everything is discussed in the meetings of Board of Directors. All important documents are available at registered office for inspection. Thus, there is no secrecy in business matters. 

4. Excessive Government Control: A large number of rules are framed for the working of companies. The companies will have to follow rules for internal working. The government tries to regulate the working of the companies because large public money is involved. In case regulations are not complied with, large penalties are involved.

Societies arrange medical camps at low fees or even free, establish dispensaries, schools and public gardens, etc.

Features of a proprietorship:

i. Easy formation and closure: This form of organisation requires minimum legal formalities while forming and closing down the business. 

ii. Unlimited liability: A sole proprietor has unlimited liability; this implies that the personal assets of the proprietor can be utilised in case the business assets fall short of debt obligations.

iii. Direct incentives: As the sole proprietor enjoys all the profits and bears all the risks and losses associated with the business, he/she gets direct incentives while running the business. 

iv. Single ownership: It is managed and controlled single-handedly by the proprietor only. 

v. Secrecy of information: In a proprietorship firm, all the decisions are taken by the proprietor; therefore, he/she retains maximum business-related secrecy. 

vi. Minimum government regulations: As a sole proprietorship firm is not governed by any laws and acts, there is minimum government interference in its operations.

Correct Answer is False

Because their share prices are low and also people are not much interested in buying their shares. Moreover, members belong to poor class and so cannot contribute much in capital.

The maximum number of members in a private limited company are 50. 

Explanation: 

As per the Companies Act 1956, the number of members in a private limited company is minimum 2 and maximum 50. On the other hand, in public limited companies, minimum 7 members are required and there is no limit for the maximum number of members.

Statutory Corporation.

In todays world, youth are more attracted towards business opportunities rather than employment.

To start a small scale industries following stages to be followed:

(i) Idea to Setup a Business : This is a first step to start a small scale industry. The prospective entrepreneur with his own capacity decide the sized and type of business like sole proprietorship, partnership or corporation.

(ii) Analysis of Business Surrounding : It is necessary to understand different business surrounding and policies before starting any business. They are competitors, legal, economical, industrial, technological, etc.

(iii) Choice of Product : Entrepreneurs has to decide his sector of production i.e. Manufacturing or Service sector. After doing market survey and understanding advantages and disadvantages one should decide line of product or services. 

(iv) Location for Business : Entrepreneur has to select location to start business. It plays very important role in success of business while selecting location many factors are to be taken into consideration like availability of labour, raw materials, power supply, transportation, etc.

(v) Technology Selection : An entrepreneur has to select available and suitable technology for his business. He should select technology he is familiar to use. 

(vi) Project Appraisal : It means the study and assessment of a project. One should study the project very carefully from the point of view regards to economy, finance, marketing and profitability. 

(vii) Capital Requirement : The entrepreneur has to plan for capital requirement and sources available for capital. It can be self finance, loan from relatives or banks. 

(viii) Incorporation / Registration : It is compulsory for every small scale industry to registered with the respective Government Authorities. A printed application form is available with District Industries Centre (DIC). Entrepreneur has to duly filled the information with his signature in the form and submit to DIC.

(ix) Implementation of Resources : After registration of business entrepreneur has to start with production process:

• Financial Resources : The entrepreneur has to collect finance and make necessary arrangement for capital. 
• Factor Set up : The entrepreneurs has to allocate space for various operations, purchase of machinery and tools and installation of it. 
• Electric power and water supply : The entrepreneur has to calculate total electric power requirement in KW (Kilowatt) and get connection from the authority and supply for water connection.
• Appointment of staff : Small scale industries are labour, intensive. One has to appoint unskilled and semi-skilled staff as per requirement to start production.

(x) Manufacturing and Selling of Product : After assembling all financial and physical resources goods are manufactured and send to market for sale. Advertising and publicity plays very important role in marketing and selling of product.

(xi) Customer’s Feedback : Customer satisfaction is very important in business. Regular feedback from customers is helping to make qualitative changes in product.

Correct option is (B) Division in small fractions

Correct Answer is False

Huge capital fund:

• To raise the capital a company divides the entire capital it needs in tiny fractions known as shares.
• This attracts people to invest in the company through buying their shares and hence become share holder or say part owner of the company.
• People also buy shares with an objective of earning profit by trading them in the share market.
• The voting right is per share so people get attracted and invest as much as possible which then helps the company to raise a very large capital.

Divison of capital in small fractions:

• If for a public company, the capital to start the company is raised from the public in the form of shares.
• The company asks the public to apply for purchasing shares of the company or in simple words ‘purchasing a share’ in the company.
• People buy company’s shares from stock market and become shareholders. The company than starts its business with the share capital i.e. fund raised by selling the shares.
• In case of a private limited company, fund is raised by members or borrowed from banks and other sources.

Correct Answer is True

Challenges before Small scale industries: 

1. Inadequate Finance 

2. Problem of Raw Material 

3. Labour Problem 

4. Marketing Problem

1. Inadequate Finance : SSI generally begins with a small amount of capital. Many of the units in the small sector raise funds from capital market. These units frequently suffer from lack of adequate working capital.

2. Problem of Raw Material : Another major problem of Small Scale Industries is inadequate supply of raw materials. Due to that SSI have to compromise on the quantity and quality of raw material, or pay more, price for good quality of raw material.

3. Labour Problem : Small industries generally appoint unskilled and semi skilled worker on daily wages, This creates the problem of low labour productivity, higher absenteeism and poor job commitment. The wages are low due to financial limitations. This leads to labour dissatisfaction and increase the problem of labour turnover. Improper shifts and lack of job security makes employment in small industries unattractive and the talented work force does not opt for such job.

4. Marketing Problem : Marketing is a weaker part of small industries. SSI have to depend excessively on middlemen who at times exploit them by paying low prices and delayed payments. Further, direct marketing may not be feasible for small business firms as they lack the necessary infrastructure.

Correct Answer is True

Small scale business are playing very important role in development of developing countries. They faced following challenges / difficulties: 

(i) Problems of Marketing : Small business organizations depend excessively on middlemen who many times exploit them by paying low price and delayed payment. Further direct marketing may not be possible for them as they lack necessary infrastructure. Major marketing problem are lack of advertising, non-branding of products, poor quality, transportation problem, local difficulties, competition, etc.

(ii) Infrastructural Problem : Problems of infrastructure faced by small business are power cuts, improper transport facility, problem like traffic congestions, bottlenecks, strikes, rise in freight charges, inadequate space, bad repair of premises, unsuitable location, high rent, etc. These problems definitely affects smooth working of small business.

(iii) Credit and Finance : Lack of finance is the major problem faced by small business. Artisans or Craftsmen running cottage industry take credits from mahajans or traders who charge large amount of interest from them. For small scale industries, institutional source of finance (e.g. banks) is also available, but the funds allocated to this sector are inadequate.

(iv) Delayed Payment: They face problem of delayed payment by large firms and Government departments.

(v) Sickness Problem: According to RBI a sick unit is that which has incurred a cash loss for one year, is likely to continue it for current year as well as following years and unit has an imbalance in financial structure. Sickness is generally seen in small business industries like cotton, jute, sugar, textile, etc. Internal causes of sickness are lack of skill labour, faulty planning, problem of recovery, etc. External causes of sickness are shortage of capital, inadequate loans, shortage of raw material, etc. However, rehabilitation of sick unit is a costly affair.

(vi) Personal Problems : Personal problems like spending long hours to work and less time with family and the rewards have not been favourable.

(vii) Shortage of Raw Material : Shortage of raw material often take place due to reasons like natural calamities, transport problem, industrial strikes, poor quality of raw material, exploitation done by traders, etc. Traders or agents who supply raw material often exploit the owner by charging higher prices. They also insist on buying finished products at lower rate. Thus, small business owners are subject to double exploitation.

(viii) Outdated Technology : Use of low-grade technical know-how and skills have resulted in low productivity in small business industries. Many units in small business make use of primitive methods of production, this leads to increase in cost of production, whereas productivity is low. Small units often do not care about the changing tastes and fashions of customers.

(ix) Underutilization of Capacity : Small business units cannot utilize optimum resources and capacity due to lack of marketing skills, lack of demand, they work below full capacity, etc. This lead to increase the cost and wastage of resources.

(x) Labour Problem : It includes highly demanding employees, absenteeism, lack of skilled workers and transportation of workers, strikes, high wage rates, inefficiency, etc.

“A company is an artificial person created by law having a separate entity with a perpetual succession and a common seal.” – L.H. Haney.

1. Name Clause: The name clause requires you to state the legal and recognized name of the company. You are allowed to register a company name only if it does not bear any similarities with the name of an existing company.

2. Situation Clause:. The registered office clause requires you to show the physical location of the registered office of the company. You are required to keep all the company registers in this office in addition to using the office in handling all the outgoing and incoming communication correspondence.

3. Objective Clause: The objective clause requires you to summarize the main objectives for establishing the company with reference to the requirements for shareholding and use of financial resources. You also need to state ancillary objectives; that is, those objectives that are required to facilitate the achievement of the main objectives.

4. Liability Clause: The liability clause requires you to state the extent to which shareholders of the company are liable to the debt obligations of the company in the event of the company dissolving. You should show that shareholders are liable only their shareholding and/or to their commitment to contribute to the dissolution costs upon liquidation of a company limited by guarantee.

5. Capital Clause: The capital clause requires you to state the company’s authorized share capital, the different categories of shares and the nominal value (the minimum value per share) of the shares. You are also required to list the company’s assets under this clause.

6. Association Clause: The association clause confirms that shareholders bound by the MOA are willingly associating and forming a company. You require seven members to sign an MOA for a public company and riot less than two people for a MOA of a private company. You must conduct the signing in the presence of witness who must also append his signature.

Private sector business which are owned by private individuals or group of individuals are termed as private sector organisation.

• It is registered for future projects.
• It has not made any accounting transactions in the last two years.
• It has not submitted a financial statement or annual report in the last two years.
• Section 455 of Companies Act, 2013 is applicable to a Dormant Company.

1. Incorporation 

2. Membership 

3. Member liability 

4. Control 

5. Nationality

Small scale business plays very important role in the economic development of the country. The following are the benefits or advantages of small business:

(i) Cost Savings : Small scale business used micro production method which results into quality product at low cost of production. Production cost of small business is much more less compared to large scale industries due to low cost of operation.

(ii) Adaptability : Small scale business can change themselves as per the market requirement. They can change product, line of product as per market changes, like fashions, new product, demand, etc. 

(iii) Limited Capital : As small business is labour intensive they requires very small amount of capital for plant and equipments. 

(iv) Low Gestation Period : To start a new business requires very short period as compared to large scale industries. Small scale business can start production of good in very short period of time and can increase the scale of production.

Labour Intensive : Small business units use less machines and more labours. Absorption of local labour helps to solve problem of absolute poverty and control inequality of income.

(vi) Opportunities to Rural Youth : New generation youth has smart creativity. With available technology and raw materials, rural youth can start their own business unit. Small business unit plays very important role in developing countries.

(vii) Upliftment of Economy : Majority of small scale business used traditional method of productions. Rural craftsman and artisans do have their own talents and skills which they have learnt from their forefathers. Such products are very much demanded in market which results in high income. 

(viii) Decentralised Economy : Small scale business prevents concentration of economic power in the few hands. Income is divided equally among large number of people.

(ix) Export Earning : Small business contributes remarkable to country’s export. 40% of India’s exports are contributed by small business like textiles, handicraft, handloom, embroidery, etc. 

(x) Regional Balance : There is wide gap between urban and rural India. Small scale business helps to reduce gap between developed and underdeveloped or developing areas.

1. A Joint Stock Company is an incorporated association. 

2. It has a legal status independent of its members. 

3. A Joint Stock Company has large membership. There is no maximum limit. 

4. Shares are available in the open market. 

5. Large number of investors are interested in buying shares. 

6. Shares are freely transferable and members have limited liability. 

7. Thus, a Joint Stock Company can raise huge capital. 

8. Capital can also be raised by company from financial institutions.

When the goods or services are bought from other countries, to home country it is called import trade.

1. Import, export and entrepot trade are the parts of foreign trade. 

2. When the goods are purchased from other countries it is called import trade. 

3. When the goods are sold to other countries it is called export trade. 

4. A combination of import and export trade is called entrepot trade. 

5. In case of entrepot trade goods are first purchased from one country i.e. imported and then sold to or exported to other country. 

6. E.g. Indian trader purchased some computers from Japan and sold them to Sri Lanka will be included in entrepot trade. 

7. Thus, entrepot trade is a combination of import and export trade.

Following are the importance of Small Business:

(i) Supply of Raw Materials to Large Industries : Finished goods of Small Scale Industries is raw material – for large scale industries. E.g., head lights supplied to automobile industries. Small Scale Industries supply raw materials to large scale industries and they get easy market available to their product.

(ii) Balanced Development between Rural and Urban Areas : With the help of locally available raw materials and labour, more and more Small Scale Business can be started in rural areas. This helps to reduced regional imbalance between urban and rural areas. 

(iii) Opportunities to Young Generation : Young generations by using their creative skills make product unique in the market. Small scale business gives an opportunity to youngster to show their creativity and abilities to prove themselves and achieve success in development.

(iv) Large Employment : India is second largest populated country after China, which faced problem of unskilled and semi skilled labour. Small Scale Industries operate with more labour and less capital, which can accommodate more man power to solve employment problem. 

(v) Utilisation of Domestic Resources : Small farmers can start their own unit of small industry by using locally available raw materials. He can get self employment and involve his family members too.

Correct Answer is False

1. Separate Legal Entity: Under Incorporation a company becomes a separate legal entity as compared to its members. The company is distinct and different from its members.

2. Limited Liability: The liability of the members of the company is limited to contribution to the assets of the company upto the face value of shares held by him. A member is liable to pay only the uncalled money due on shares held by him.

1. Large Capital: A company can secure large capital compared to a sole trader or partnership. Large amount of capital is necessary for conducting business on a large scale.

2. 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. In the case of a company limited by shares, the liability of a shareholder is restricted to the unpaid amount on the shares held by him.

3. Transferability of Shares: Transaction of Shares between two individuals is easy. So there is liquidity of investment. Any shareholder can easily convert his shares into money by selling his shares.

(a) Concave mirror: Because to get powerful parallel beams of light.
(b) Convex mirror: Because these mirrors are fitted on the sides of the vehicle, enabling the driver to see traffic.
(c) Concave Mirror: Because to get powerful parallel beams of light.

(a) Headlights of a car use a concave mirror.
Concave mirror renders the rays parallel whenobject is placed at its principal focus. The bulb of headlight is at focus of concave mirror, the rays reflected from the mirror are in the form of a strong parallel beam, which goes straight and makes the distant objects visible for safe driving.
(b) Side/rear view mirror of a vehicle isconvex mirror; because of its largest field of view.
(c)Solar furnace uses a concave mirror. The object to be heated to be placed at the focus of concave mirror. The parallel rays coming from the sun become incident on the mirror and get reflected at focus. That is sufficient energy is received from the sun and collected at one point (focus) to heat the object.

When temperature is low and pressure is high the intermolecular forces become appreciable thus the volume occupied by the molecular is not negligibly small as composed to volume of gas.

Acc. to Avogadro’s hypothesis, equal volumes of all gases under similar conditions of temperature and pressure contain the same number of molecules. Hence both samples have equal number of molecules. Hence both samples have equal number of molecules. 

(i) Maneggiare

(ii) control

(iii) common goal

A plane mirror forms an erect image of equal size; while a convex mirror forms an erect image of smaller size irrespective of the distance of object from the mirror, so correct choice is (d).

At low temperature and high pressure, the intermolecular attractions become appreciable. So, the volume occupied by the gas molecules cannot be neglected in comparison to the volume of the gas. Hence the real gases show large from ideal gas behaviour.

A diverging mirror is used as a rear-view mirror.

True.

An erect image is formed by a concave mirror, only if the object is placed between the pole and the principal focus of the mirror (i.e, range of object distance between  0 and 15 cm. i.e., 0 < u < 15 cm.)
Nature: The image is virtual.
Size of Image: The image is larger than the object. The ray diagram is shown in  figure.

The image formed by a rearview mirror is smaller than the image in a plane mirror.

The average K.E. of a gas molecule depends only on the absolute temperature of the gas and is directly proportional to it.

According to law of equi partition of energy, the average kinetic energy of a molecule in each degree of freedom is same and is equal to (1/2) KT

Average kinetic energy depends only upon the absolute temperature and is directly proportional to it. 

The line passing through the pole and the centre of curvature of a spherical mirror is called principal axis.

1. Co-ordinate

2. Means