Explore topic-wise InterviewSolutions in Current Affairs.

1. Yes, he has to pay to his creditors.

2. A sole trading concern has unlimited liability therefore, he has to pay his creditors by selling off his private property.

(c) Joint Hindu Family 

Exploring: Searching (or) investigating, to make a careful investigation (or) study of something.

Correct option is (B) Public company

Correct option is (A) Stock exchange

The elected representatives of shareholders are called directors. 

Explanation: 

Directors are the representatives of shareholders in a company. This is because the number of shareholders is large and they may belong to different places across the country. Therefore, they cannot take part in meetings. Thus, directors are elected or chosen to attend meetings on their behalf

(iii) Housing cooperative 

(c) 1st April 2012 to 31st March 2017

The minimum numbers of persons required for the registration of a private company is 2. 

Explanation: 

A private company is formed with minimum two persons. Thus, it can be registered when there are atleast two members. On the other hand, a public limited company is formed with minimum 7 members.

Quartiles: If the data is divided into four equal parts with three dividing points, then the dividing points are called Quartiles. The first dividing point is Q₁ the second dividing point is Q₂/Median and the third dividing point is Q₃

Deciles: If the data is divided into ten equal parts with nine dividing points, the dividing points are called Deciles. They are denoted by D₁, D₂…D₉

Similarly Percentiles can be defined.

Mode is used to find the true characteristics in any manufacturing industries, such as to find the most common size in ready made garments, Shoes, any items etc.

GM and HM are used to calculate the averages, where very accurate values are needed, in cases of Time, Velocity’, Speed, Bank rates, Interest rates etc.

To compare the variability/dispersion of two or more distributions, co-efficient variation is used.

An absolute measure of dispersion is a measure which measures of dispersion of the given data and are expressed in their respective units of measurements. 

The relative measure of dispcrsion is used for the comparison of dispersion of different data. which is a pure ratio. which does not contain any units of measurements. They are called coefficient.

The measures of dispersion are [a] Range, [b] Quartile deviation, [c] Mean Deviation and [d] The Standard deviation.

C.V = \(\frac{6}{X}\) x 100

15 =\(\frac{σ}{30}\) x 100

\(\frac{18 \times 30}{100}\) = σ

∴ σ = 5.4

C.V = \(\frac{σ}{X}\) x 100 = \(\frac{15}{50} \times 100 \) = 30%.

In a frequency distribution if the frequencies are concentrated around the centre, and the curve is non-skew ie look like bell shaped curve and the Mean, Median and Mode are equal/coincide in the curve and two quartiles Q₁ and Q₃ are equidistant from the median, then the curve is called symmetric curve.

When the frequency distribution is plotted on a graph, if the right tail of the curve is Elongated or longer than the left tail, the distribution is called Positively skewed. Where as if the left tail of the curve is elongated or longer than the right tail, the distribution is called Negatively skewed.

Lack of symmetry or asymmetrical distribution is called Skewness.

GM=Antilog [Xlogx/n] = Antilog [ 13.5107/5] = Antilog(2.7021) = 503.6

If Ram decides to start as proprietorship than he has to raise all the capital by himself. He can get it from his own savings or borrow money form bank, financial institutions. He can also study the different government schemes and raise capital through those schemes.

If Ram decides to start partnership firm than he will have to find a person who is ready to invest in his partnership firm as well as he has knowledge about manufacturing parts of bicycle. They can raise capital by investing their savings, borrowing through financial institutions and friends. They can also take help from various government schemes and institutions set-up to help SSI.

If Ram decides to start corporation i.e. Pvt. Ltd. Company than he can raise capital by issuing equity shares privately. He has to sell the shares to his friends and relatives. He can also study of various government schemes and raise capital through those schemes. Ram can also borrow money from bank, financial institutes, etc. He can also accept deposits from public in the further stage of his business.

Features of Government Company: The Government Company may be registered as public or private limited companies. These companies are established for purely business purpose and to compete with the private sector. 

Following are the features of Government Company: 

(i) Free from Procedural Controls: The Government companies have a right to formulate their independent policies and even make necessary changes in them. It enjoys freedom from budgetary, accounting and audit controls which are applicable to Government undertakings.

(ii) Majority of Government Directors : All or majority of directors of such companies are appointed by the Government from different fields. They may be experts from banking sector, insurance sector, who manage the day to day business affairs.

(iii) Public Accountability : The annual accounts of the company are tabled before Parliament or State Legislature for review and discussion. Thus, Government Company is accountable and answerable to the Parliament or State Legislature through the concerned Minister.

(iv) Registration under the Companies Act: The Government Company is registered under the Companies Act, 2013 and its formation, working, management and winding up a business is governed by provisions of- the Act. Government has power to modify or change certain provisions laid down in the Act

Goods are ultimately manufactured for consumers. There is competition among many manufacturers and traders to sale goods in the market. 

Without selling the goods, manufacturer cannot earn profit. Profit is main motto of business.

To sale goods in market, advertising and publicity is required. To make your brand image in market, advertising with quality of goods is required. Branded goods are easily sold in the market. Marketing can be done through many ways like TV, Radio, Bill Boards, Internet, Websites, Salesman, etc. Thus, marketing is a necessary step of running a business.

Mode = Size of highest frequency. 

Let X and f be the number of children and number of families. 

Highest frequency is 35, its size (X) is Z. 

∴ Mode(Z) = 2 children per family.

Other Types of Companies are as follows:

1. Government Company: A government company means a company in which more than 51% of paid-up capital is held by

• Central Government or 
• one or more State Governments or 
• partly by Central and partly by State Government or 
• Subsidiary Company of Government Company. It may be a private or a public company.

2. Foreign Company: It means a company that is incorporated outside of India, but having business in India. 

3. Dormant company: A company that is registered for a future project or has not made any significant accounting transactions in the last two years or has not filed financial statements or annual returns in the last two years is called a Dormant company. 

4. Listed Company: A company that has listed any of its securities on any recognized stock exchange is called a Listed Company. Such a company has to follow SEBI’s guidelines and the provisions of the Companies Act, 2013.

1. Bajaj Auto Limited – Public Limited Company 

2. Coal India Limited – Government Company 

3. Microsoft India – Subsidiary Company of American Software Company Microsoft Corporation

4. Kirloskar Foundation – Company Not for Profit (Corporate Social Responsibility)

(i) This type of organisation is called as Multinational Corporation.

(ii) Multinational Corporation means the companies which undertake business activities in more than one country. So this company is registered in Singapore and having branches in India and Sri Lanka.

(iii) It is a Departmental Organisation.

(iv) No separate legal entity and Government employees are the merits of Departmental Organisation.

(i) Joint Hindu Family Firm.

(ii) Raghunath is the Karta.

(iii) Kiran and Naman are called as co-parceners.

(A) Meaning:

1. A Government Company is one in which atleast 51% of its paid up capital is held by the Central Government and / or the State Government. 

2. State Trading Corporation (STC), Steel Authority of India (SAIL), Bharat Heavy Electricals Ltd (BHEL) etc. are some of the examples of Government Companies. 

3. These companies are registered under the Indian Companies Act, 2013 and its working is governed by the rules and regulations of the act.

4. Government Companies are established for purely business purpose and to complete with the private sector. The shares of the company are purchased in the name of the President of India. 

5. Government Companies may be registered as public or private limited companies.

(B) Features of Government Company: 

The Government Company may be registered as public or private limited companies. These companies are established for purely business purpose and to compete with the private sector.

Following are the features of Government Company:

(i) Free from Procedural Controls: The Government companies have a right to formulate their independent policies and even make necessary changes in them. It enjoys freedom from budgetary, accounting and audit controls which are applicable to Government undertakings.

(ii) Majority of Government Directors : All or majority of directors of such companies are appointed by the Government from different fields. They may be experts from banking sector, insurance sector, who manage the day to day business affairs. 

(iii) Public Accountability : The annual accounts of the company are tabled before Parliament or State Legislature for review and discussion. Thus, Government Company is accountable and answerable to the Parliament or State Legislature through the concerned Minister. 

(iv) Registration under the Companies Act: The Government Company is registered under the Companies Act, 2013 and its formation, working, management and winding up a business is governed by provisions of- the Act. Government has power to modify or change certain provisions laid down in the Act.

(v) Own Staff: The employees are appointed as per the rules and regulations set by the company. Its employees are not governed by respective Government. 

(vi) Promotes Social Welfare : Government Companies aims to optimise national and natural resources such as land, water, electricity, etc. It produces arms, ammunition and other defence equipments. It also brings about balanced regional development and leads to equality of income. 

(vii) Objective : It operates on commercial principles and as such its aim is to make profit.

(viii) Separate Legal Entity : A Government Company is a corporate body created under the Companies Act. It has all features of a company such as legal entity, common seal, limited liability, etc. It can enter into contracts and acquire property in its own name. 

(ix) Exemptions : Government Company is exempted from budget, accounting and audit laws applicable to government departments. Its accounts are audited by the Government Auditor. The Government has a right to exempt the company from any provisions of Companies Act which may come in its way of providing welfare services to the public at large. 

(ix) Suitability : Government Companies are suitable for conducting manufacturing and marketing activities.

(i) It is a Statutory Corporation.

(ii) Corporate body, No political interference, Own staffing system are the features of Statutory Corporation.

(iii) Life Insurance Corporation of India is the example of Statutory Corporation.

(Discrete data)

Mode = Size of highest frequency

Highest frequency is 25, its size (X) is 40.

∴ Mode (Z) = 40

Following are the types of companies:

(A) On the basis of Incorporation:

• Statutory Company: Statutory companies are incorporated by Special Act. Such Act is passed in Central or State legislation.
• E.g. Reserve Bank of India, State Bank of India, Unit Trust of India, Life Insurance Corporation, etc.
• Registered Company: Such companies are formed under the Companies Act, 2013 or any previous company law.

(B) On the basis of Number of Members:

(i) Private Company: It is a company having minimum paid-up capital as prescribed by its Articles. Such companies restrict the rights of their members to transfer their shares and also restrict the maximum number of its members up to 200. Such companies are also prohibited to invite the public to subscribe to their securities or deposits.

(ii) Public Company: It is a company having a minimum paid-up share capital as prescribed by its Articles. Such companies do not restrict the rights of their members to transfer their shares. It requires minimum of 7 members to form a company and there is no limit on the maximum number of members. Such companies can invite the public to subscribe for its securities or deposits.

(iii) One Person Company: It is a company, in which one person is a member. Such a company is managed by a single person, having limited liability. It should follow the rules of a private company. It may have one or more directors.

(C) One the basis of Liability of Members:

(i) Companies Limited by Shares: Such companies are formed as per Section 2(22) of the Companies Act, 2013. Such companies have to share capital and its members have limited liabilities up to unpaid part of the face value of shares held by them. At the time of winding up of the company, the personal property of shareholders is not used.

(ii) Company Limited by Guarantee: As per Section 2(21) of Companies Act, 2013 such companies may or may not have share capital.

Every Member promises to pay a specific amount for liabilities and debts of the company on liquidation. Such amount is mentioned in the Memorandum of Association. Members give guarantees and they carry a specific amount of liability. Generally, such companies work for the promotion of sports, art, culture, charity, etc.

(iii) Unlimited Liability Companies: As per Section 2(92) of the Company Act, 2013 such companies have members with unlimited liability. Members are fully liable to liabilities and debts of the company. It may be a private, public, or one-person company.

(D) On the basis of Control:

(i) Holding Company: A company holding more than half of the share capital of another company is called a Holding Company. This company has the power to appoint directors of another company and remove directors of another company.

(ii) Subsidiary Company: The company which is controlled by a holding company is called a Subsidiary Company.

1. It is a business organisation that operates in many different countries. 

2. It conducts business activities in more then one country. 

3. It is controlled through centrally located head office. 

4. They are also called as transnational or international corporations. 

5. Example : Bata India, Infosys, Tata Motors, etc.

(i) ‘X’ company is a Government Company.

(ii) Separate legal entity and Registration under the Companies Act, 2013 are the features of “X Government Company.

(iii) Hindustan Machine Tools (HMT), State Trading Corporation (STC), are the examples of the Government Company.

The deviation/variation of actual salues fions any measure of central tendency is Dispersion/ Variation. The degree/the extent of deviation is the measure ofdispe&on. The tneaswes of dispersion are Range, Quartile deviation, Mean Deviation and the Standard deviation.

x̄ ≥ GM ≥ HM.

Mode = Size of most repeated term 

∴ Mode (Z) = 2

Correct option is (D) Both (A) and (B)

(Ungrouped/Raw data) 

Mode = Size of most repeated term 

Mode(Z) = 40 [It is more no. of times]

(a) Public Company 

Correct option is (C) Systematic decisions

As per Companies Act, a company which is not a private company is called a public company.

Features of a partnership firm: 

i. Risk bearing: The risk associated with the fluctuations in the firm’s profits is borne jointly by the partners. 

ii. Decision making and control: In a partnership firm, decisions are jointly taken by the partners. Also, the operations are controlled jointly by the partners. 

iii. Unlimited liability: In a partnership firm, all the partners have unlimited liability. That is, all the partners are liable for the debts of the firm to an unlimited extent. 

iv. Agreement: A partnership requires an agreement (either oral or written) between two or more partners. 

v. Number of members: In a partnership firm, the minimum and maximum numbers of members are 2 and 20, respectively. However, for a banking business, the maximum number of members is 10. 

vi. Continuity: According to the Partnership Act, the death, lunacy, insolvency or insanity of any of the partners ends the partnership. 

The following are the five features of a partnership firm: 

i. Easy formation: A partnership firm requires an agreement (oral or written) among the members on the share of profits and losses. 

ii. Unlimited liability: In a partnership, all partners have unlimited liability. That is, all partners are liable for the debts of the firm to an unlimited extent. 

iii. Risk bearing: The risk associated with the fluctuations in the firm’s profits is borne jointly by the partners. This reduces the burden on each partner. 

iv. Sharing of decision making and control: In a partnership firm, the decision making and control are jointly shared by the partners. 

v. Number of members: In a partnership business, the minimum number of members is 2 and the maximum number of members is 20. However, for a banking business, the maximum number of members is 10.

A company in which the liability of members is limited to the face value of number of shares they hold is called company limited by share capital.

According to The Indian Co-operative Societies Act, 1912, “Cooperative organization is a society which lias its objectives for the promotion of economic interests of its members in accordance with co-operative principles.”

Features of a Co-operative Society

(i) Voluntary Membership The membership of a co-operative society is voluntary. There is no compulsion for anyone to join or quit a society after serving a notice procedurally. Membership is open to all, irrespective of their religion, caste and gender.

(ii) Legal Status Registration of a co-operative society is compulsory. This accords a separate identity to the society which is distinct from its members. The society can enter into contracts and hold property in its name, sue and be sued by others. As a result of being a separate legal entity, it is not affected by the entry or exit of its members.

(iii) Limited Liability: The liability of the members of co-operative society is limited to the extent of the amount contributed by them as capital. This defines the maximum risk that a member can be asked to bear.

(iv) Control lit a co-operative society: the power to take decisions lies in the hands of an elected managing committee. The right to vote gives the members a chance to choose the members who will constitute the managing committee and this leads the cooperative society a democratic character.

(v) Service Motive: The co-operative society through its purpose lays emphasis on the values of mutual help and welfare. Hence, the motive of service dominates its working. If any surplus is generated as a result of its operations, it is distributed amongst the members as dividend in conformity with the bye-laws of the society. Merits of Co-operative Society

(i) Equality in Votes Co-operative society is governed by the principle of one man one vote’. Each member is entitled to equal voting rights irrespective of the amount of capital contributed by a member.

(ii) Limited Liability The liability of members of a co-operative society is limited to the extent of their capital contribution and hence, the personal assets of the members cannot be used to repay business debts.

(iii) Continuity Death, bankruptcy or insanity of the members do not affect continuity of a co-operative society.

(iv) Economy in Operations The focus of co-operative society is on elimination of middlemen which helps in reducing costs. The members generally offer honorary services to the society and the risk of bad debts is lower as customers or producers are members of the society too.

(v) Government Support The co-operative society is supported by the government in the form of low taxes, subsidies and low interest rates on loans.

(vi) Ease of Formation The co-operative society can be started with a minimum of ten members and the registration procedure is done under Cooperative Societies Act, 1912. 

Limitations of Co-operative Society

(i) Limited Resources Capital contributions in a cooperative society are from the members with limited means.

(ii) Inefficient Management The members of co-operative societies are not professionals and offer honorary services on a voluntary basis. They are not equipped to carry out the management functions effectively.

(iii) Lack of Secrecy It is difficult to maintain secrecy about the operations of a cooperative society due to open discussions in the meetings and disclosure obligations as per the Societies Act, (7).

(iv) Government Regulations Co-operative societies have to comply with several rules and regulations related to auditing of accounts, submission of accounts, etc and also work under control of state co-operative departments.

(v) Internal Conflicts Internal conflicts arise when personal interests start dominating the welfare motive.

Types of Co-operative Societies

(i) Consumer’s Co-operative Societies The consumer co-operative societies are comprises to protect the interests of consumers as its aim is eliminating middlemen to achieve economy in operations and provide good quality products at reasonable prices. It purchases goods in bulk directly from the wholesalers and sells goods to the members

(ii) Producer’s Co-operative Societies These societies are comprise to protect the interest of small producers and are set up to provide the supplying of raw materials, equipment and other inputs to the members and buying their output for sale. Profits among the members are distributed on the basis of their contributions to the society.

(iii) Marketing Co-operative Societies Such societies consist to help the small producers who wish to obtain reasonable prices for their output and want to market their products. Its members Jointly perform marketing functions like transportation, warehousing, packaging, etc to sell the output at the best possible price and profits are distributed according to each member’s contribution to the pool of output.

(iv) Farmer’s Co-operative Societies These societies comprise of farmers as members who Jointly take up farming activities to gain the benefits of large scale farming and increase the productivity. Such societies ’provide better quality seeds, fertilizers, machinery and other modern techniques to member farmers.

(v) Credit Co-operative Societies – Credit co-operative societies are formed for providing easy credit on reasonable terms to the members. These societies provide loans at low rates to members out of the amounts collected as capital and deposits from the members thereby eliminating exploitation by moneylenders.

(vi) Co-operative Housing Societies Co-operative housing societies help people with low income to construct houses at reasonable costs and giving them the option of paying in installments. These societies construct flats or provide plots to members for construction of houses.

i. (a) 10

ii. (b) Directors

iii. (b) Statutory

Merits of a proprietorship:

i. Ease of formation and closure: There are hardly any legal formalities required while forming and shutting down a sole proprietorship firm; hence, its formation is relatively easy. 

ii. Quick decision making: A sole proprietor enjoys complete control over the business. This makes the decision-making process quick and easy. 

iii. Minimum government regulations: There is minimum interference by the government, as this business form is not governed by any laws and acts. 

iv. Direct incentives: The profits and losses wholly belong to the proprietor. Hence, he/she enjoys direct incentives for operating the business. 

v. High degree of flexibility: There exists a high degree of operational flexibility, as all the decisions are taken by the proprietor alone. Thus, for any variation in business plans, the proprietor enjoys complete flexibility. 

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