Maharashtra Board Class 11 Secretarial Practice Solutions Chapter 6 Directors and Key Managerial Personnel of a Company

Balbharti Maharashtra State Board Class 11 Secretarial Practice Solutions Chapter 6 Directors and Key Managerial Personnel of a Company Textbook Exercise Questions and Answers.

Maharashtra State Board Class 11 Secretarial Practice Solutions Chapter 6 Directors and Key Managerial Personnel of a Company

1A. Select the correct answer from the options given below and rewrite the statements.

Question 1.
_____________ comprises of a team of Directors.
(a) Board of Directors
(b) Board of Trustees
(c) Board of Managers
Answer:
(a) Board of Directors

Question 2.
_____________ can be a director.
(a) An Individual
(b) A Firm
(c) A Body corporate
Answer:
(a) An individual

Maharashtra Board Class 11 Secretarial Practice Solutions Chapter 6 Directors and Key Managerial Personnel of a Company

Question 3.
Upto _____________ as maximum directors are allowed to a company.
(a) five
(b) fifteen
(c) fifty
Answer:
(b) fifteen

Question 4.
A maximum of _____________ Directorships is allowed to a person.
(a) two
(b) ten
(c) twenty
Answer:
(c) twenty

Question 5.
A maximum of _____________ Directorships of a public company is allowed to a person.
(a) one
(b) ten
(c) twenty
Answer:
(b) ten

Question 6.
_____________ is a unique identification number required to be a Director.
(a) PIN
(b) DIN
(c) TIN
Answer:
(b) DIN

Question 7.
_____________ powers are the powers given to Board under the Act.
(a) Statutory
(b) Managerial
(c) Administrative
Answer:
(a) Statutory

Question 8.
Director represents company in his role as _____________
(a) Agent
(b) Managing Partner
(c) employee
Answer:
(a) Agent

Maharashtra Board Class 11 Secretarial Practice Solutions Chapter 6 Directors and Key Managerial Personnel of a Company

Question 9.
Managing Director is appointed for a period of _____________ years
(a) 5
(b) 10
(c) 15
Answer:
(a) 5

Question 10.
_____________ is required to work under superintendence, control, guidance of the Board.
(a) Government
(b) ROC
(c) Managing Director
Answer:
(c) Managing Director

Question 11.
_____________ is an employee of the company.
(a) Alternate director
(b) Non-executive Director
(c) Whole-time director
Answer:
(c) Whole time Director

Question 12.
_____________ need not be a director of the company.
(a) Manager
(b) Managing Director
(c) Whole-time director
Answer:
(a) Manager

Question 13.
_____________ needs a whole time director.
(a) Listed company
(b) Partnership
(c) OPC
Answer:
(a) Listed company

Question 14.
To provide guidance to Board is _____________ duty of Company Secretary.
(a) Personal
(b) General
(c) Statutory
Answer:
(c) Statutory

Question 15.
Only a member of _____________ can be a practicing Company Secretary.
(a) ICAI
(b) ACCA
(c) ICSI
Answer:
(c) ICSI

Maharashtra Board Class 11 Secretarial Practice Solutions Chapter 6 Directors and Key Managerial Personnel of a Company

Question 16.
_____________ is to be prepared in prescribed form MR-3.
(a) Annual Report
(b) Auditors Report
(c) Secretarial Audit Report
Answer:
(c) Secretarial Audit Report

1B. Match the pairs.

Question 1.

Group ‘A’ Group ‘B’
(a) Board of Directors (1) Nominated by the Board
(b) Managing Director (2) Assists and advises the Board
(c) Company Secretary (3) Automatic Appointment
(d) First Directors (4) Appointed by ROC
(e) Alternate Director (5) Extensive Powers of management
(6) Substantial Powers of management
(7) Appointed by Promoter
(8) Assist and Advises the Government
(9) Negligible Powers of management
(10) Nominated by Council

Answer:

Group ‘A’ Group ‘B’
(a) Board of Directors (5) Extensive Powers of management
(b) Managing Director (6) Substantial Powers of management
(c) Company Secretary (2) Assists and advises the Board
(d) First Directors (7) Appointed by Promoter
(e) Alternate Director (1) Nominated by the Board

Question 2.

Group ‘A’ Group ‘B’
(a) Public company (1) Arises due to death of Director
(b) Private company (2) Collective Powers
(c) Secretarial Auditor (3) Individual Powers to Directors
(d) Casual Vacancy of a Director (4) Arises due to additional work
(e) Powers of the Board (5) Appointed by Managing Director
(6) At least 2 (two) Directors
(7) At least 3 (three) Directors
(8) At least 15 (fifteen) Directors
(9) At least 1 (one) Director
(10) Appointed by the Board

Answer:

Group ‘A’ Group ‘B’
(a) Public company (7) At least 3 (three) Directors
(b) Private company (6) At least 2 (two) Directors
(c) Secretarial Auditor (10) Appointed by the Board
(d) Casual Vacancy of a Director (1) Arises due to death of Director
(e) Powers of the Board (2) Collective Powers

1C. Write a word or a term or a phrase that can substitute each of the following statements.

Question 1.
The organization with distinct features of separate ownership and management.
Answer:
Joint-stock company

Question 2.
The officer is responsible for the company’s finances.
Answer:
Chief Financial Officer

Question 3.
The body of elected representatives of the company.
Answer:
The Board of Directors

Question 4.
The officer is a statutory and administrative officer and also acts as co-ordinator of the company.
Answer:
Company Secretary

Question 5.
Qualification required to be a Company Secretary.
Answer:
Member of ICSI

Maharashtra Board Class 11 Secretarial Practice Solutions Chapter 6 Directors and Key Managerial Personnel of a Company

Question 6.
Agents, Trustees, and Managing Partners of the company.
Answer:
The Board of Directors

Question 7.
The audit which checks compliances of different legislations.
Answer:
Secretarial audit

Question 8.
This KMP signs documents of the company requiring authentication by the company.
Answer:
Company Secretary

Question 9.
The nature of the relationship of Directors with the company.
Answer:
Fiduciary

Question 10.
Name the Secretarial Standard – 1.
Answer:
Secretarial Standards on meetings of the BOD

Question 11.
Name the Secretarial Standard – 2.
Answer:
Secretarial Standards on General Meeting

Question 12.
Name the Secretarial Standard – 3.
Answer:
Secretarial Standards on Dividend

1D. State whether the following statements are True or False.

Question 1.
A large number of shareholders necessitates the company to have a separate managerial body.
Answer:
True

Question 2.
The maximum number of Directors allowed to a company is 15 (fifteen).
Answer:
True

Maharashtra Board Class 11 Secretarial Practice Solutions Chapter 6 Directors and Key Managerial Personnel of a Company

Question 3.
A public company should have a minimum of 10 (ten) directors.
Answer:
False

Question 4.
DIN is required for Secretaryship.
Answer:
False

Question 5.
Executive Director is called an outside Director.
Answer:
False

Question 6.
The promoter of a company cannot be the Independent Director.
Answer:
True

Question 7.
Only individuals can be directors.
Answer:
True

Question 8.
The casual vacancy of the Board is filled by the members.
Answer:
False

Question 9.
To function as per Articles of Association of the company is the statutory duty of the Board.
Answer:
True

Question 10.
A Director is an employee of the company.
Answer:
False

Question 11.
The Managing Director is appointed by a resolution.
Answer:
True

Question 12.
The minimum and maximum age to be a Managing Director is 21 and 70 respectively.
Answer:
True

Maharashtra Board Class 11 Secretarial Practice Solutions Chapter 6 Directors and Key Managerial Personnel of a Company

Question 13.
A company may appoint more than one M.D.
Answer:
True

Question 14.
Indian companies prefer a Managing Director over a Manager.
Answer:
True

1E. Find the odd one.

Question 1.
Woman Director, Promoter, Executive Director.
Answer:
Promoter

Question 2.
Absent at Board Meeting, failure to disclose an interest, DIN.
Answer:
DIN

1F. Complete the sentences.

Question 1.
Separate ownership and management is a unique feature of _____________
Answer:
Company

Question 2.
Minimum number of Directors for a private company should be _____________
Answer:
Two

Question 3.
Minimum number of Directors for a public company should be _____________
Answer:
Three

Question 4.
Minimum number of Directors for an OPC should be _____________
Answer:
One

Maharashtra Board Class 11 Secretarial Practice Solutions Chapter 6 Directors and Key Managerial Personnel of a Company

Question 5.
First Directors of a company are appointed by _____________
Answer:
Promoter

Question 6.
At least one Woman Director is required by _____________ company.
Answer:
Listed Company

Question 7.
Casual vacancy on Board is filled by _____________
Answer:
Board

Question 8.
Director is the guardian of interest of company as _____________
Answer:
Trustees

Question 9.
First Secretary is appointed by _____________
Answer:
Promoters

Question 10.
The audit which checks the compliance of Companies Act is called as _____________
Answer:
Secretarial Audit

1G. Select the correct option from the bracket.

Question 1.

Group ‘A’ Group ‘B’
(1) Rotational Director …………………..
(2) ………………………. Alternate Director
(3) Woman Director …………………..
(4) ………………………. First Director

(Every Listed Company, Appointee by Promoters, Appointed in Place of a director who is absent, Retire by Rotation)
rotation)
Answer:

Group ‘A’ Group ‘B’
(1) Rotational Director Retire by Rotation
(2) Appointed in Place of a director who is absent Alternate Director
(3) Woman Director Every Listed Company
(4) Appointee by Promoters First Director

1H. Answer in one sentence.

Question 1.
Who is the officer responsible for the company’s financial plan?
Answer:
Chief Financial Officer is responsible for the company’s financial plan.

Question 2.
What is the importance of Secretarial Standards?
Answer:
The main aim of Secretarial Standards is to standardize all diverse secretarial practices prevailing in the corporate world.

Maharashtra Board Class 11 Secretarial Practice Solutions Chapter 6 Directors and Key Managerial Personnel of a Company

Question 3.
Who provides guidance to the Board of Directors?
Answer:
Company Secretary provides guidance to the Board of Directors.

Question 4.
What is the tenure of ‘Managing Director?
Answer:
The tenure of the Managing director is Five Years.

1I. Correct the underlined word and rewrite the following sentences.

Question 1.
A public company must have a minimum of 15 directors.
Answer:
A public company must have a minimum of 03 directors.

Question 2.
First Directors are appointed by ROC.
Answer:
First Directors are appointed by Promoters.

Question 3.
Secretarial Standards are given by the Companies Act, 2013.
Answer:
Secretarial Standards are given by the Institute of Company Secretaries of India.

2. Explain the following terms/concepts.

Question 1.
Director
Answer:
Director is a person appointed to manage, direct and supervise the company. According to Sec-2(34) of the act, “Director means a director appointed to the Board of the company”.

Question 2.
Managing Director
Answer:
Managing Director is a director appointed by virtue of an agreement with the company; or by passing a resolution in the general meeting or by its Board of Directors or by virtue of Memorandum of Associations or Articles of Association. He is entrusted with substantial powers of management of the affairs of the company. He is appointed for a period of 5 years.

Maharashtra Board Class 11 Secretarial Practice Solutions Chapter 6 Directors and Key Managerial Personnel of a Company

Question 3.
Independent Director
Answer:
As per section 149 of the Companies Act, 2013, any director other than a managing director, whole-time director, or a nominee director is termed as an independent director.

Question 4.
Executive Director
Answer:
Executive Director is also called as ‘Whole Time Director’, He is in full-time employment with the company. He plays an important role in the day-to-day management of the company.

Question 5.
Non-Executive Director
Answer:
Non-Executive Director is known as ‘Outside Director’. Non-Executive Director is not involved in the day-to-day management of the company. He is appointed to get second opinions from the board.

Question 6.
Alternate Director
Answer:
Alternate Director is a director who is nominated by the board in the place of absence director. He is appointed for a minimum of 3 months.

Question 7.
Casual vacancy of Director
Answer:
The casual vacancy is created due to the death of a director, which is filled by the board at the board meeting. It is valid till the vacating director’s incomplete term.

Question 8.
Chief Financial officer
Answer:
An officer responsible for the company’s finances is called Chief Financial Officer. He need not be a director of the company. He has to compulsory sign the audited financial statements of the company.

Question 9.
Company Secretary
Answer:
The company secretary is appointed to perform functions of the company and he is appointed by a resolution of the Board. He has to follow the terms and conditions decided by the board. He should be a member of ICSI.

Question 10.
Secretarial Standard
Answer:
It is formulated by ICSI and approved by Central Government through the Ministry of Corporate Affairs (MCA). The main purpose of setting Secretarial Standards is to standardized fine corporate government practices prevailing in companies.

Maharashtra Board Class 11 Secretarial Practice Solutions Chapter 6 Directors and Key Managerial Personnel of a Company

Question 11.
Secretarial Audit
Answer:
It is an audit that monitors the compliance requirements of the company. The main aim of such an audit is to detect errors and mistakes in compliance with the rules and regulations of the Companies Act. It builds confidence among regulators, management, and shareholders of the company.

Question 12.
The Board of Directors
Answer:
Representatives elected by the Equity Shareholder in their Annual General Meeting are called as Board of Directors. They are allotted certain powers to control and manage the business of the firms.

3. Study the following case/situation and express your opinion.

1. Mr. A is a commerce graduate. He has vast experience in the field of finance and the financial market. He wishes to become a director of PQR Co. Ltd.

Question (a).
Is he required to obtain DIN?
Answer:
He was required to obtain DIN. It is compulsory to acquire DIN for every Director.

Question (b).
Can PQR Co. Ltd. object to his directorship on lack of specialized qualification?
Answer:
The company act has not prescribed any academic or professional qualification for directors, so he can obtain directorship.

Question (c).
If he is appointed as director of PQR Co. Ltd, is he entitled to remuneration?
Answer:
The managerial position entitles him to get managerial remuneration so if Mr. A is appointed as director of PQR Co. Ltd then he is entitled to remuneration.

2. Mr. Z is a member of the Institute of Company Secretaries of India.

Question (a).
Can Mr. Z be appointed as pro-tem Secretary of LMN Ltd. which is under formation?
Answer:
Yes, Mr. Z can be appointed as pro-tem secretary of LMN Ltd. which is under formation. The First Secretary is appointed by the promoters of the company.

Question (b).
Can Mr. Z work as Secretarial Auditor?
Answer:
Yes, Mr. Z can work as Secretarial Auditor because he is a member of ICSI.

Question (c).
Mr. Z wishes to be employed as whole time Secretary in companies ABC Ltd. and OPC Ltd. Is he allowed?
Answer:
Mr. Z, as a whole-time secretary, cannot hold office in more than one company. So, Mr. Z can be employed either in ABC Ltd or One Person Company and not in both.

Maharashtra Board Class 11 Secretarial Practice Solutions Chapter 6 Directors and Key Managerial Personnel of a Company

3. Mr. M wishes to be the Managing director of QRS Ltd.

Question (a).
The age of Mr. M is 30 years. Can he be appointed as MD of a company?
Answer:
Yes, Mr. M is 30 years old and the age required to be completed for MD’s post is 21 years. So he can be appointed as MD of a Company.

Question (b).
Is it necessary that Mr. M should be one of the directors on the Board of QRS Ltd?
Answer:
Yes, It is necessary that Mr. M should be one of the directors on the board of QRS Ltd. He should be appointed by the board.

Question (c).
For how long a period QRS Ltd. can appoint Mr. M. as a Managing Director?
Answer:
QRS Ltd can appoint Mr. M. as a managing director for a period of 5 years.

4. Distinguish between the following.

Question 1.
Director and Managing Director
Answer:

Basis Director Managing Director
1. Meaning Director is the elected representative of the shareholders of the company. The managing director represents the board in the day-to-day activities of the business.
2. Appointment He is elected at the Annual General Meeting by the members of the company. He is appointed by the board of directors.
3. Tenure Directors of public companies retire by rotation. Maximum tenure is of 3 years, 1/3 of Independent Director is not liable to retire by rotation. The tenure of managing director is for a term of five years.
4. Remuneration Remuneration for services is given as per specific provisions. The director is given sitting fees to attend the board meeting which may extend up to ₹ 1 lakh plus remuneration. M.D is entitled to either a monthly salary or 5 % of the net profit. If more than one M.D. is appointed then maximum remuneration cannot be more than 10% of the net profit.
5. Status Directors are elected representatives of the shareholders managing company in absence of shareholders. They can be agents of the company but not employees of the company. Managing Director has dual status i.e. a director and a manager (employee).
6. Positions held Director is the only member or person on the board. The managing director is the director on the Board. M.D. is the whole time manager in the company.
7. Number of companies Director can work in 20 companies at a time wherein a maximum of 10 public companies at a time. A person can be an M.D. of a maximum of 2 companies at a time.

Question 2.
Managing Director and Manager
Answer:

Basis Managing Director Manager
1. Meaning The Managing Director is appointed by the Board to look after the day-to-day administration of the company. The manager is in charge of the whole management affairs of the company.
2. Appointment The managing director is appointed by an agreement with the company or by resolution passed by the company in a Board meeting or by virtue of its Articles of Associations of the company. The manager is appointed under a contract of service.
3. Remuneration MD is entitled to either a monthly salary or 5% of net profit. If there is more than one managing director, the maximum remuneration payable is 10% of the net profit. Maximum remuneration to a manager cannot be more than 5% of the net profit.
4. Number of posts A company may have more than one Managing Director. He can be M.D. in maximum of 2 companies. The company can have only one post of manager.
5. Power He is given substantial powers of management. He is entrusted with whole powers of management.
6. Position held The managing director must be the director of the company. The manager need not be a director of the company.

Question 3.
Managing Director and Whole Time Director
Answer:

Basis Managing Director Whole Time Director
1. Meaning The managing director represents the board in the day-to-day management of the company. The whole time director devotes whole time to the working of the company.
2. Powers The Managing Director is given substantial powers of management. A whole-time director does not have the power to take decisions on policy matters.
3. Number of posts A person can be an M.D. of a maximum of 2 companies at a time. More than one whole-time directorship is not possible at a time.
4. Performance He manages the affairs and business of the company. He performs important administrative functions of the company.

5. Answer in brief.

Question 1.
What is DIN?
Answer:

  • It means Director Identification Number.
  • DIN is a Unique Identification Number for an existing director or person intending to be the director of a company.
  • It is compulsory to acquire DIN by Director.
  • It helps in the detection and handling of offenses committed by a director.
  • It is obtained through an online process by filing an application.

Maharashtra Board Class 11 Secretarial Practice Solutions Chapter 6 Directors and Key Managerial Personnel of a Company

Question 2.
State any four powers of the Board of Directors.
Answer:

  • Director is a person appointed to manage, direct and supervise the affairs of the company.
  • The power of the Board of Directors are as follows:
  • To appoint or remove key managerial personnel: The Board of Directors has the power to appoint and remove key managerial personnel.
  • To recommend dividend: The board of directors recommends the dividend to the shareholders.
  • To fill a casual vacancy in the Board: Casual vacancy in the board arises due to different reasons such as the death of a director who is filled by the Board at the Board meeting.
  • To issue securities whether in India or abroad: Board of Director’s issue securities means shares, debentures, bonds) in India and abroad also.

Question 3.
Mention any four ways in which the office of a director becomes vacant.
Answer:
The office of a Director shall automatically become vacant in the following ways:

  • Any disqualification: A person cannot be appointed as a director if he is of unsound mind or insolvent or convicted by the court.
  • Absentee at Board meeting: Director who has been absent in the meeting of the board of directors held during the period of 12 months with or without taking leave of absence of the Board.
  • Disqualification by Court or Tribunal: Director has to vacate office if he has been disqualified by an order of a court or the Tribunal.
  • Provision of the Act: Director has to vacate office if he is removed under the provisions of the Companies Act.

Question 4.
State the powers of a Managing Director.
Answer:
As it is stated in the definition itself the Managing Director is entrusted with the substantial powers of management, which clearly indicates that he has been given certain important powers of routine business matters of a company.
The powers exercised by him are fellows:

  • To act as a link between the Board of Directors and the managerial staff.
  • To look after the management and administration of a company.
  • To appoint the company employees.
  • To participate in policymaking as well as policy execution.
  • To sign contracts on behalf of a company.
  • To decide about the investment of funds of a company.
  • To receive remuneration from a company.

Question 5.
State the statutory duties of a company secretary.
Answer:
Secretary is an employee of the company. He enjoys the power and advises the management.
Statutory duties of a company secretary are as follows:

  • To organize meetings and be present at all the meetings of the company.
  • To maintain the minutes of all meetings.
  • To issue notices and circulars to the members of the company.
  • To maintain and update the Register of members and debenture holders and other books of the company.
  • To file all necessary returns with the Registrar of Companies.
  • To communicate with the shareholders on various matters.

Maharashtra Board Class 11 Secretarial Practice Solutions Chapter 6 Directors and Key Managerial Personnel of a Company

6. Justify the following statements.

Question 1.
Directors are managing partners.
Answer:

  • Directors have to work as a team as Board of Directors, not as an individual.
  • The powers by Board are subject to provisions of the Companies Act and Memorandum and Articles of Associations.
  • Director is required to perform his functions.
  • He represents shareholders to conduct and manage the business of the company on their behalf.
  • They are entrusted with vast powers of management and perform several functions which are proprietary in nature like allotment of shares, raising of loans, investing funds of the company.
  • This is because they themselves are significant shareholders of the company.
  • In fact, they are the most active shareholders of the company.
  • Thus, Directors are the managing partners of the company.

Question 2.
A Director is an agent of the company.
Answer:

  • Since the company is an artificial person, it needs to be represented by the Director.
  • They deal on behalf of the company.
  • Directors should deal skillfully, carefully, and diligently.
  • Directors are held liable as an, while company is held liable as the principal.
  • A Director is an agent as he acts between the company and shareholders.
  • Thus, a director is an agent of the company.

Question 3.
The company has a distinct feature of separate ownership and management.
Answer:

  • The company has a unique feature of separate ownership and management.
  • Shareholders are its owner and Directors are its managers.
  • Being an artificial person, it needs a human agent to manage and control the working of the company.
  • Shareholders are scattered all over therefore management of the company by them is not possible.
  • Also, the shareholders are not interested in the management of such a big organization.
  • The company as an artificial person having no physical existence needs humans to control its affair.
  • Thus, the company has a distinct feature of separate ownership and management.

Maharashtra Board Class 11 Secretarial Practice Solutions Chapter 6 Directors and Key Managerial Personnel of a Company

Question 4.
DIN helps investors of the company.
Answer:

  • DIN is a unique identification number for an existing director or person intending to be the director of the company.
  • It is compulsory to acquire DIN by every Director.
  • Din is Pre-require for e-filling of company’s documents.
  • It helps the investors of the company to make a more accurate and informed decisions because they get to known the composition of the top management of the company.
  • It also helps to handle the problems created due to a company after collecting or raising money from the public.
  • Thus, I agree with the given statement.

Question 5.
Directors have to work as a team.
Answer:

  • Directors have to work as a team of “Board of Directors” and not individually.
  • He exercises the power as a Board which is subject to provision of the Act.
  • Director is a representative of shareholders so he has to work collectively in the best interest of the company and its shareholders.
  • He cannot take decisions alone on behalf of the company.
  • Thus, directors have to work as a team.

Question 6.
Directors play a triple role.
Answer:

  • Directors play a triple role i.e. in the form of an agent, as a managing partner, and as a trustee.
  • As an agent, the director deals skillfully, carefully, and elegantly while representing the company with outsiders.
  • As a managing partner, the director acts as a representative of the shareholder and manages the company on their behalf.
  • As a trustee, the director acts as a guardian of the interest of shareholders and a company.
  • They use the company’s funds in the most appropriate manner and cautiously.
  • They are also the trustee of all the assets of the company.
  • Thus, directors play a triple role.

Question 7.
Company Secretary plays a triple role.
Answer:

  • Company Secretary plays a three-fold role in the form of – as a statutory officer, as a coordinator, and as an administration officer.
  • As a statutory officer, the secretary signs the document for authentication, files annual returns to ROC, maintains various statutory registers and ensures compliance with the law.
  • As a coordinator, the secretary acts as a network between the Board of Directors and other executive officers at different levels. He acts as an internal as well as external coordinator for the company.
  • As an administrative officer, the secretary ensures the implementation of various policies of the company and also supervises and controls the functioning of various departments of the company.
  • Thus, Company Secretary plays a triple role.

Maharashtra Board Class 11 Secretarial Practice Solutions Chapter 6 Directors and Key Managerial Personnel of a Company

Question 8.
A director cannot be called an employee of the company.
Answer:

  • Directors are elected representatives of the company’s shareholders.
  • The status of an employee is within the limits of his contract and service.
  • His employer holds the ultimate control to guide his activities and functions.
  • These limits of an employee cannot be applied to a director.
  • So a director cannot be called an employee of the company.
  • Thus, a director cannot be called an employee of the company.

Question 9.
The managing Director has substantial powers of management.
Answer:
As it is stated in the definition itself the Managing Director is entrusted with the substantial powers of management, which clearly indicates that he has been given certain important powers of routine business matters of a company.
The powers exercised by him are as follows:

  • To act as a link between the Board of Directors and the managerial staff.
  • To look after the management and administration of a company.
  • To appoint the company employees.
  • To participate in policymaking as well as policy execution.
  • To sign contracts on behalf of a company.
  • To decide about the investment of funds of a company.
  • To receive remuneration from a company.

Question 10.
Indian companies prefer to appoint a Managing Director than a Manager.
Answer:

  • Indian company prefers to appoint managing director rather than manager because Managing Directors holds dual authorities and he is able to influence the board of director in a better way.
  • Manager need not be a director of a company while the managing director has to be director of a company,
  • The company cannot have more than one manager, while it can have more than one managing director.
  • Thus, Indian companies prefer to appoint a managing director than a manager.

Question 11.
Pro-tem secretary is helpful to the company.
Answer:

  • The first secretary of the company is appointed by the promoters of the company.
  • The first secretary is called as ‘pro-tem’ secretary.
  • Pro-tem secretary appointed by promoters may or may not be appointed as full-time or regular Secretary.
  • Pro-tem secretary helps in fulfilling different formalities during the formation of the company.
  • Thus, the Pro-tem secretary is helpful to the company.

Question 12.
Secretarial Standards should be in conformity with the Act.
Answer:

  • The Secretarial Standards are formulated by the Institute of Company Secretaries of India and approved by the Central Government through the Ministry of Corporate Affairs.
  • The Companies Act, 2013, makes compliance with the Secretarial Standard mandatory.
  • It leads to provide better monitoring of compliances of law, strengthening the process of the Board, and create confidence in investors.
  • The Secretarial Standards aim at achieving integrating, harmonizing, and standardizing fine corporate governance practices across all companies.
  • Thus, Secretarial Standards should be in conformity with the Act.

Maharashtra Board Class 11 Secretarial Practice Solutions Chapter 6 Directors and Key Managerial Personnel of a Company

Question 13.
Secretarial Standards lead to better legal compliance.
Answer:

  • Companies follow diverse practices based on differing business cultures and varied usages over a period of time.
  • The Secretarial Standards aim at achieving integrating, harmonizing, and standardizing fine, corporate governance across all companies
  • It leads to provide better monitoring of compliance of the law, strengthening the process of the Board, and create confidence in investors.
  • Secretarial Standards are reviewed by Secretarial Standard Board (SSB) once a year or whenever changes are made in the law.
  • Thus, Secretarial Standards lead to better legal compliance

Question 14.
A secretarial Audit is required under the laws.
Answer:

  • It is an audit that checks the compliance of various legislation including the Companies Act, other Corporate Acts, and economic laws.
  • It aims at detecting errors and mistakes in the compliance mechanisms.
  • It gives confidence to regulators, management authorities, and shareholders that the company is following a disciplined approach of evaluation and improve effectiveness and risk management.
  • Thus, Secretarial Audit is required under the laws.

7. Answer the following questions.

Question 1.
Explain the Role of Directors.
Answer:
Director is a person appointed to manage, direct and supervise the affairs of the company.
The elected representatives of the shareholders are called Directors.

Role of the Directors:

  • He helps the investors to take accurate decision.
  • He has to fill casual vacancies on the board.
  • He has to recommend dividends.
  • He has to issue securities in India or abroad.
  • He manages a company on behalf of the shareholder.
  • He appoints the first auditor of the company.
  • He can appoint or remove Key Managerial Personnel.
  • He can borrow the money on behalf of the company.
  • His role is full of trust, loyalty, care, and good faith.
  • Directors act as a trustee, agent and managing partner for the company.

Question 2.
Explain the duties of a Director.
Answer:
A director’s relationship with a company is regarded as fiduciary in nature. It means his duty is full of trust, care, and good faith.
The duties of directors can be categorized into two heads:

  1. Statutory Duties:
    • To file a return of Allotment.
    • To act in accordance with the Articles of the company.
    • To disclose an interest in a transaction.
    • To attend Board meetings.
    • To appoint first Auditors of the company.
  2. General Duties:
    • Duty of good faith i.e. he must act in the best interest of the company.
    • Duty of care i.e. he must take utmost care in the performance of work assigned.
    • Duty not to delegate i.e. he is required to perform his function personally. He may delegate in case of emergency.

Maharashtra Board Class 11 Secretarial Practice Solutions Chapter 6 Directors and Key Managerial Personnel of a Company

Question 3.
Explain the Managing Director.
Answer:
Definition: The Companies Act, has defined a Managing Director as “A Director who by virtue of an agreement with the company or of a resolution passed by a company in the general meeting or by its Board of Directors or by virtue of its Memorandum or Articles of Association, is entrusted with substantial powers of management of the company”.

Disqualification:

  • Any person less than 21 years of age and more than 70 years of age.
  • A person who is an undischarged insolvent person or has at any time been adjudged as an insolvent.
  • A person who has suspended payment to his creditors or made a composition with them.
  • A person who is, or has been convicted by a court of an offense with a sentence of more than 6 months period.

Appointment:
A Managing Director may be appointed by any one of the following ways:

  • by an agreement with a company.
  • by the resolution passed at the general meeting.
  • by the Board of Directors.

Term of office:
The term of office of the Managing Director cannot exceed 5 years at a time, but he can be reappointed as such for a further period of five years.

The number of Managing Directorship:
A Managing Director can not act as such for more than two companies at the same time.

Remuneration:
The remuneration paid to the Managing Director is subject to the maximum limit of 5% of the net profit of a company or a monthly salary. If a company has more than one Managing Director then total remuneration paid to them (all) shall not exceed 10% of the net profit.

Powers of a Managing Director:

  • To act as a link between the Board of Directors and the managerial staff.
  • To look after the management and administration of a company.
  • To appoint the company employees.
  • To participate in policymaking as well as policy execution.
  • To sign contracts on behalf of a company.
  • To decide about the investment of funds of a company.
  • To receive remuneration from a company.

Duties of a Managing Director:

  • To act on behalf (agent) of the Board of Directors.
  • To implement the decision of the Board.
  • To supervise, direct, control, and guide the day-to-day affairs of the business.
  • To guide the senior executives in their administrative work.
  • To report to the Board about programmes made or any problem faced by a company.
  • To chair the Board meetings and general meetings, if necessary.
  • To manage routine work of a company.
  • To sign all the contracts and documents on behalf of the company.

Question 4.
Explain the Company Secretary.
Answer:
Meaning:

  • Secretary is an employee of the company and he is appointed to perform functions of a company secretary,
  • He should be a member of the Institute of Company Secretaries of India (ICSI).
  • The first secretary is appointed by the promoter of the company and he is called a ‘pro-tem’ secretary.
  • He holds liable for non-compliance with the provisions of the Act.

Duties of a Company Secretary:
It is categorized as (A) Statutory Duties and (B) General Duties.

(A) Statutory Duties:

  • To organize and attend meetings of the company.
  • To prepare minutes of meetings.
  • To communicate with shareholders on various matters.
  • To issue notices and circulars to the members of the company.
  • To maintain various Registers and books of the company
  • To file returns with the ROC.

(B) General Duties:

  • To provide guidance to the Board of Directors as needed.
  • To discharge duties towards regulators and authorities of the company.
  • To assist the Board of Directors in conducting the business of the company.
  • To perform duties allotted by the Board.

Rights of a Secretary:

  • To control and supervise the working of departments of the company.
  • To get indemnified by the company, if any loss is suffered by the secretary.
  • To sign documents requiring authentication.
  • To get remuneration from the company.

Maharashtra Board Class 11 Secretarial Practice Solutions Chapter 6 Directors and Key Managerial Personnel of a Company

Question 5.
Explain the role of the Company Secretary.
Answer:
The company secretary plays a crucial and important role in the administration of the company.
The emphasis on good governance has increased the role of the secretary in protecting the interest of investors.

Role of Company Secretary:

  • Secretary as a Statutory officer:
  • To sign documents for authentication.
  • To sign and deliver Annual Returns and other documents and to the Registrar of Companies.
  • To maintain different statutory registers like
    • Minutes of General and Board meetings of the company.
    • Registers of Members and Debenture holders Register of Directors and KMP and their shareholdings.
  • To ensure compliance with the law

(ii) Secretary as a Co- ordinator:

  • To implement policies framed by the Board.
  • To act as a link between the Board and other executives at different levels.
  • To act as a mouthpiece or spokesperson of the Board.
  • To act as an internal and external coordinator.

(iii) Secretary as an Administration officer:

  • To ensure implementation of the policies of the company.
  • To supervise and control the functioning of different departments of the company.
  • To take an overall view of different aspects of the company’s administration and develop a strong and efficient organizational setup.
  • To contribute to the administration of the company.

Maharashtra Board 11th Maths Solutions Chapter 3 Permutations and Combination Ex 3.6

Balbharti Maharashtra State Board 11th Maths Book Solutions Pdf Chapter 3 Permutations and Combination Ex 3.6 Questions and Answers.

Maharashtra State Board 11th Maths Solutions Chapter 3 Permutations and Combination Ex 3.6

Question 1.
Find the value of
(a) 15C4
Solution:
Maharashtra Board 11th Maths Solutions Chapter 3 Permutations and Combination Ex 3.6 Q1 (i)

(b) 80C2
Solution:
Maharashtra Board 11th Maths Solutions Chapter 3 Permutations and Combination Ex 3.6 Q1 (ii)

(c) 15C4 + 15C5
Solution:
Maharashtra Board 11th Maths Solutions Chapter 3 Permutations and Combination Ex 3.6 Q1 (iii)

(d) 20C1619C16
Solution:
Maharashtra Board 11th Maths Solutions Chapter 3 Permutations and Combination Ex 3.6 Q1 (iv)

Question 2.
Find n if
(a) 6P2 = n(6C2)
Solution:
Maharashtra Board 11th Maths Solutions Chapter 3 Permutations and Combination Ex 3.6 Q2 (i)

(b) 2nC3 : nC2 = 52 : 3
Solution:
Maharashtra Board 11th Maths Solutions Chapter 3 Permutations and Combination Ex 3.6 Q2 (ii)

(c) nCn-3 = 84
Solution:
Maharashtra Board 11th Maths Solutions Chapter 3 Permutations and Combination Ex 3.6 Q2 (iii)

Question 3.
Find r if 14C2r : 10C2r-4 = 143 : 10.
Solution:
Maharashtra Board 11th Maths Solutions Chapter 3 Permutations and Combination Ex 3.6 Q3
∴ 2r(2r – 1) (2r – 2) (2r – 3) = 14 × 12 × 10
∴ 2r(2r – 1) (2r – 2) (2r – 3) = 8 × 7 × 6 × 5
Comparing on both sides, we get
∴ r = 4

Question 4.
Find n and r if,
(a) nPr = 720 and nCn-r = 120
Solution:
Maharashtra Board 11th Maths Solutions Chapter 3 Permutations and Combination Ex 3.6 Q4 (i)

(b) nCr-1 : nCr : nCr+1 = 20 : 35 : 42
Solution:
Maharashtra Board 11th Maths Solutions Chapter 3 Permutations and Combination Ex 3.6 Q4 (ii)
Maharashtra Board 11th Maths Solutions Chapter 3 Permutations and Combination Ex 3.6 Q4 (ii).1

Question 5.
If nPr = 1814400 and nCr = 45, find n+4Cr+3.
Solution:
Maharashtra Board 11th Maths Solutions Chapter 3 Permutations and Combination Ex 3.6 Q5

Question 6.
If nCr-1 = 6435, nCr = 5005, nCr+1 = 3003, find rC5.
Solution:
Maharashtra Board 11th Maths Solutions Chapter 3 Permutations and Combination Ex 3.6 Q6
Maharashtra Board 11th Maths Solutions Chapter 3 Permutations and Combination Ex 3.6 Q6.1
Maharashtra Board 11th Maths Solutions Chapter 3 Permutations and Combination Ex 3.6 Q6.2

Question 7.
Find the number of ways of drawing 9 balls from a bag that has 6 red balls, 8 green balls, and 7 blue balls so that 3 balls of every colour are drawn.
Solution:
9 balls are to be selected from 6 red, 8 green, 7 blue balls such that the selection consists of 3 balls of each colour.
∴ 3 red balls can be selected from 6 red balls in 6C3 ways.
3 reen balls can be selected from 8 green balls in 8C3 ways.
3 blue balls can be selected from 7 blue balls in 7C3 ways.
∴ Number of ways selection can be done if the selection consists of 3 balls of each colour
Maharashtra Board 11th Maths Solutions Chapter 3 Permutations and Combination Ex 3.6 Q7

Question 8.
Find the number of ways of selecting a team of 3 boys and 2 girls from 6 boys and 4 girls.
Solution:
There are 6 boys and 4 girls.
A team of 3 boys and 2 girls is to be selected.
∴ 3 boys can be selected from 6 boys in 6C3 ways.
2 girls can be selected from 4 girls in 4C2 ways.
∴ Number of ways the team can be selected
Maharashtra Board 11th Maths Solutions Chapter 3 Permutations and Combination Ex 3.6 Q8

Question 9.
After a meeting, every participant shakes hands with every other participants. If the number of handshakes is 66, find the number of participants in the meeting.
Solution:
Let there be n participants present in the meeting.
A handshake occurs between 2 persons.
∴ Number of handshakes = nC2
Given 66 handshakes were exchanged.
66 = nC2
66 = \(\frac{\mathrm{n} !}{2 !(\mathrm{n}-2) !}\)
66 × 2 = \(\frac{n(n-1)(n-2) !}{(n-2) !}\)
132 = n (n – 1)
n(n – 1) = 12 × 11
Comparing on both sides, we get n = 12
∴ 12 participants were present at the meeting.

Question 10.
If 20 points are marked on a circle, how many chords can be drawn?
Solution:
To draw a chord we need to join two points on the circle.
There are 20 points on a circle.
∴ Total number of chords possible from these points
Maharashtra Board 11th Maths Solutions Chapter 3 Permutations and Combination Ex 3.6 Q10

Question 11.
Find the number of diagonals of an n-sided polygon. In particular, find the number of diagonals when
(i) n = 10
(ii) n = 15
(iii) n = 12
(iv) n = 8
Solution:
In n-sided polygon, there are ‘n’ points and ‘n’ sides.
∴ Through ‘n’ points we can draw nC2 lines including sides.
∴ Number of diagonals in n sided polygon = nC2 – n (n = number of sides)
Maharashtra Board 11th Maths Solutions Chapter 3 Permutations and Combination Ex 3.6 Q11

Question 12.
There are 20 straight lines in a plane so that no two lines are parallel and no three lines are concurrent. Determine the number of points of intersection.
Solution:
There are 20 lines such that no two of them are parallel and no three of them are concurrent.
Since no two lines are parallel, they intersect at a point.
∴ Number of points of intersection if no two lines are parallel and no three lines are concurrent = 20C2
= \(\frac{20 !}{2 ! 18 !}\)
= \(\frac{20 \times 19 \times 18 !}{2 \times 1 \times 18 !}\)
= 190

Question 13.
Ten points are plotted on a plane. Find the number of straight lines obtained by joining these points if (a) no three points are collinear (b) four points are collinear
Solution:
There are 10 points on a plane.
(a) When no three of them are collinear.
A line is obtained by joining 2 points.
∴ Number of lines passing through these points = 10C2
= \(\frac{10 !}{2 ! 8 !}\)
= \(\frac{10 \times 9 \times 8 !}{2 \times 1 \times 8 !}\)
= 5 × 9
= 45

(b) When 4 of them are collinear.
If no three points are collinear, we get a total of 10C2 = 45 lines by joining them. …..[From (i)]
Since 4 points are collinear, only one line passes through these points instead of 4C2 lines.
4C2 – 1 extra lines are included in 45 lines.
Number of lines passing through these points
= 45 – (4C2 – 1)
= 45 – \(\frac{4 !}{2 ! 2 !}\) + 1
= 45 – \(\frac{4 \times 3 \times 2 !}{2 \times 2 !}\) + 1
= 45 – 6 + 1
= 40

Question 14.
Find the number of triangles formed by joining 12 points if
(a) no three points are collinear
(b) four points are collinear
Solution:
There are 12 points on the plane.
(a) When no three of them are collinear.
A triangle can be drawn by joining any three non-collinear points.
∴ Number of triangles that can be obtained from these points = 12C3
= \(\frac{12 !}{3 ! 9 !}\)
= \(\frac{12 \times 11 \times 10 \times 9 !}{3 \times 2 \times 1 \times 9 !}\)
= 220

(b) When 4 of these points are collinear.
If no three points are collinear, total we get 12C3 = 220 triangles by joining them. ……[From (i)]
Since 4 points are collinear, no triangle can be formed by joining these four points.
4C3 extra triangles are included in 220 triangles.
∴ Number of triangles that can be obtained from these points = 12C34C3
= 220 – \(\frac{4 !}{3 ! \times 1 !}\)
= 220 – \(\frac{4 \times 3 !}{3 !}\)
= 220 – 4
= 216

Question 15.
A word has 8 consonants and 3 vowels. How many distinct words can be formed if 4 consonants and 2 vowels are chosen?
Solution:
There are 8 consonants and 3 vowels.
From 8 consonants, 4 can be selected in 8C4
= \(\frac{8 !}{4 ! 4 !}\)
= \(\frac{8 \times 7 \times 6 \times 5 \times 4 !}{4 \times 3 \times 2 \times 1 \times 4 !}\)
= 70 ways.
From 3 vowels, 2 can be selected in 3C2
= \(\frac{3 !}{2 ! 1 !}\)
= \(\frac{3 \times 2 !}{2 !}\)
= 3 ways.
Now, to form a word, these 6 ietters (i.e., 4 consonants and 2 vowels) can be arranged in 6P6 = 6! ways.
∴ Total number of words that can be formed = 70 × 3 × 6!
= 70 × 3 × 720
= 151200
∴ 151200 words of 4 consonants and 2 vowels can be formed.

Question 16.
Find n if,
(i) nC8 = nC12
Solution:
nC8 = nC12
If nCx = nCy, then either x = y or x = n – y
∴ 8 = 12 or 8 = n – 12
But 8 = 12 is not possible
∴ 8 = n – 12
∴ n = 20

(ii) 23C3n = 23C2n+3
Solution:
23C3n = 23C2n+3
If nCx = nCy, then either x = y or x = n – y
∴ 3n = 2n + 3 or 3n = 23 – 2n – 3
∴ n = 3 or n = 4

(iii) 21C6n = \({ }^{21} \mathrm{C}_{\left(\mathrm{n}^{2}+5\right)}\)
Solution:
21C6n = \({ }^{21} \mathrm{C}_{\left(\mathrm{n}^{2}+5\right)}\)
If nCx = nCy, then either x = y or x = n – y
∴ 6n = n2 + 5 or 6n = 21 – (n2 + 5)
∴ n2 – 6n + 5 = 0 or 6n = 21 – n2 – 5
∴ n2 – 6n + 5 = 0 or n2 + 6n – 16 = 0
If n2 – 6n + 5 = 0, then (n – 1)(n – 5) = 0
∴ n = 1 or n = 5
If n = 5 then
n2 + 5 = 30 > 21
∴ n ≠ 5
∴ n = 1
If n2 + 6n – 16 = 0, then (n + 8)(n – 2) = 0
n = -8 or n = 2
n ≠ -8
∴ n = 2
∴ n = 1 or n = 2

Check:
n = 2
∴ n2 + 5 = 22 + 5 = 9
21C6n = 21C12
and \({ }^{21} \mathrm{C}_{\left(\mathrm{n}^{2}+5\right)}\) = 21C9
nCr = nCn-r
21C12 = 21C9
∴ n = 2 is a right answer.

(iv) 2nCr-1 = 2nCr+1
Solution:
2nCr-1 = 2nCr+1
If nCx = nCy, then either x = y or x = n – y
∴ r – 1 = r + 1 or r – 1 = 2n – (r + 1)
But r – 1 = r + 1 is not possible
∴ r – 1 = 2n – (r + 1)
∴ r + r = 2n
∴ r = n

Check:
2nCr-1 = 2nCn-1
and 2nCr+1 = 2nCn+1
using nCr = nCn-r, we have
2nCn+1 = 2nC2n-(n+1) = 2nCn-1
2nCr-1 = 2nCr+1

(v) nCn-2 = 15
Solution:
nCn-2 = 15
nC2 = 15 …..[∵ nCr = nCn-r]
∴ \(\frac{n !}{(n-2) ! 2 !}=15\)
∴ \(\frac{n(n-1)(n-2) !}{(n-2) ! \times 2 \times 1}=15\)
∴ n(n – 1) = 30
∴ n(n – 1) = 6 × 5
Equating both sides, we get
∴ n = 6

Question 17.
Find x if nPr = x nCr.
Solution:
Maharashtra Board 11th Maths Solutions Chapter 3 Permutations and Combination Ex 3.6 Q17

Question 18.
Find r if 11C4 + 11C5 + 12C6 + 13C7 = 14Cr.
Solution:
Maharashtra Board 11th Maths Solutions Chapter 3 Permutations and Combination Ex 3.6 Q18

Question 19.
Find the value of \(\sum_{r=1}^{4}{ }^{(21-r)} \mathrm{C}_{4}\).
Solution:
Maharashtra Board 11th Maths Solutions Chapter 3 Permutations and Combination Ex 3.6 Q19

Question 20.
Find the differences between the greatest values in the following:
(a) 14Cr and 12Cr
Solution:
Greatest value of 14Cr.
Here, n = 14, which is even.
Greatest value of nCr occurs at r = \(\frac{n}{2}\) if n is even.
∴ r = \(\frac{n}{2}\)
∴ r = \(\frac{14}{2}\) = 7
Maharashtra Board 11th Maths Solutions Chapter 3 Permutations and Combination Ex 3.6 Q20 (i)
∴ Difference between the greatest values of 14Cr and 12Cr = 14Cr12Cr
= 3432 – 924
= 2508

(b) 13Cr and 8Cr
Solution:
Greatest value of 13Cr.
Here n = 13, which is odd.
Greatest value of nCr occurs at r = \(\frac{n-1}{2}\) if n is odd.
∴ r = \(\frac{\mathrm{n}-1}{2}\)
∴ r = \(\frac{13-1}{2}\) = 6
Maharashtra Board 11th Maths Solutions Chapter 3 Permutations and Combination Ex 3.6 Q20 (ii)
∴ Difference between the greatest values of 13Cr and 8Cr = 13Cr8Cr
= 1716 – 70
= 1646

(c) 15Cr and 11Cr
Solution:
Greatest value of 15Cr.
Here n = 15, which is odd.
Greatest value of nCr occurs at r = \(\frac{n-1}{2}\) if n is odd.
∴ r = \(\frac{n-1}{2}\)
∴ r = \(\frac{15-1}{2}\) = 7
Maharashtra Board 11th Maths Solutions Chapter 3 Permutations and Combination Ex 3.6 Q20 (iii)
∴ Difference between the greatest values of 15Cr and 11Cr = 15Cr11Cr
= 6435 – 462
= 5973

Question 21.
In how many ways can a boy invite his 5 friends to a party so that at least three join the party?
Solution:
Boy can invite = (3 or 4 or 5 friends)
Consider the following table:
Maharashtra Board 11th Maths Solutions Chapter 3 Permutations and Combination Ex 3.6 Q21
∴ Number of ways a boy can invite his friends to a party so that three or more of join the party = 10 + 5 + 1 = 16

Question 22.
A group consists of 9 men and 6 women. A team of 6 is to be selected. How many of possible selections will have at least 3 women?
Solution:
There are 9 men and 6 women.
A team of 6 persons is to be formed such that it consist of at least 3 women.
Consider the following table:
Maharashtra Board 11th Maths Solutions Chapter 3 Permutations and Combination Ex 3.6 Q22
∴ No. of ways this can be done = 1680 + 540 + 54 + 1 = 2275
∴ 2275 teams can be formed if team consists of at least 3 women.

Question 23.
A committee of 10 persons is to be formed from a group of 10 women and 8 men. How many possible committees will have at least 5 women? How many possible committees will have men in majority?
Solution:
(i) A committee of 10 persons is to be formed from 10 women and 8 men such that the committee contains at least 5 women.
Consider the following table:
Maharashtra Board 11th Maths Solutions Chapter 3 Permutations and Combination Ex 3.6 Q23
∴ Number of committees with at least 5 women
= 14112 + 14700 + 6720 + 1260 + 81
= 36873

(ii) Number of committees with men in majority = Total number of committees – (Number of committees with women in majority + women and men equal in number)
= 18C10 – 36873
= 18C8 – 36873
= 43758 – 36873
= 6885

Question 24.
A question paper has two sections. Section I has 5 questions and section II has 6 questions. A student must answer at least two questions from each section among 6 questions he answers. How many different choices does the student have in choosing questions?
Solution:
There are 11 questions, out of which 5 questions are from section I and 6 questions are from section II.
The student has to select 6 questions taking at least 2 questions from each section.
Consider the following table:
Maharashtra Board 11th Maths Solutions Chapter 3 Permutations and Combination Ex 3.6 Q24
∴ Number of choices = 150 + 200 + 75 = 425
∴ In 425 ways students can select 6 questions, taking at least 2 questions from each section.

Question 25.
There are 3 wicketkeepers and 5 bowlers among 22 cricket players. A team of 11 player is to be selected so that there is exactly one wicketkeeper and at least 4 bowlers in the team. How many different teams can be formed?
Solution:
There are 22 cricket players, of which 3 are wicketkeepers and 5 are bowlers.
A team of 11 players is to be chosen such that exactly one wicket keeper and at least 4 bowlers are to be included in the team.
Consider the following table:
Maharashtra Board 11th Maths Solutions Chapter 3 Permutations and Combination Ex 3.6 Q25
∴ Number of ways a team of 11 players can be selected
= 45045 + 6006
= 51051

Question 26.
Five students are selected from 11. How many ways can these students be selected if
(a) two specified students are selected?
(b) two specified students are not selected?
Solution:
5 students are to be selected from 11 students.
(a) When 2 specified students are included,
then remaining 3 students can be selected from (11 – 2) = 9 students.
∴ Number of ways of selecting 3 students from 9 students = 9C3
= \(\frac{9 !}{3 ! \times 6 !}\)
= \(\frac{9 \times 8 \times 7 \times 6 !}{3 \times 2 \times 1 \times 6 !}\)
= 84
∴ Selection of students is done in 84 ways when 2 specified students are included.

(b) When 2 specified students are not included, then 5 students can be selected from the remaining (11 – 2) = 9 students.
∴ Number of ways of selecting 5 students from 9 students = 9C5
= \(\frac{9 !}{5 ! 4 !}\)
= \(\frac{9 \times 8 \times 7 \times 6 \times 5 !}{5 ! \times 4 \times 3 \times 2 \times 1}\)
= 126
∴ Selection of students is done in 126 ways when 2 specified students are not included.

Maharashtra Board Class 11 Sociology Solutions Chapter 6 Socialization

Balbharti Maharashtra State Board Class 11 Sociology Solutions Chapter 6 Socialization Textbook Exercise Questions and Answers.

Maharashtra State Board Class 11 Sociology Solutions Chapter 6 Socialization

1. (A) Choose the correct alternative and complete the statements.

Question 1.
The process whereby an individual learns to conform to the norms of society is called …………………..
(assimilation / socialization / co-operation)
Answer:
socialization

Question 2.
Family is a ………………….. agency of socialization.
(primary / secondary / tertiary)
Answer:
primary

Maharashtra Board Class 11 Sociology Solutions Chapter 6 Socialization

Question 3.
School is an ………………….. agency of socialization.
(primary / secondary / tertiary)
Answer:
secondary

Question 4.
Television is a / an ………………….. medium of communication.
(audio / visual / audio visual)
Answer:
audio-visual

1. (B) Correct the incorrect pair.

Question 1.
(a) Language, behaviour – Family
(b) Social values like friendship – Peer Group
(c) Teamwork, discipline – Neighbourhood
(d) To build opinion – Mass media
Answer:
(c) Team work, discipline – Workplace

1. (C) Identify the appropriate term from the given options.

(Internet, Peer Group, Childhood, Socialization)
Question 1.
Takes place in the early years of life.
Answer:
Socialization

Question 2.
Global impact in today’s world.
Answer:
Internet

Maharashtra Board Class 11 Sociology Solutions Chapter 6 Socialization

1. (D) Correct the underlined words and complete the sentence.

Question 1.
Radio is an audiovisual medium.
Answer:
Radio is an audio medium.

Question 2.
Peer group is an example of an authoritarian agency.
Answer:
Family is an example of an authoritarian agency.

2. Write short notes.

Question 1.
Formation of ‘self ’ according to Mead.
Answer:
George Mead has elaborated on the process of building social self which does not exist at birth. According to Mead, formation of self occurs in three distinct stages.
Stage 1 – Imitation : In this stage, children imitate behaviour of adults without understanding it. Example : A little boy might drive his mother to her office by driving his toy car or help his parents clean the floor by pushing a broom.

Stage 2 – Play stage : A child plays, sometimes as being a mother or a teacher, at times a postal worker, a police officer etc. In this stage, responses are not organized. A child internalises the attitudes of others who are significant to her/his through enacting the roles of others. A significant other is someone whose opinions matter to us and who is in a position to influence our thinking.

Stage 3 – Game stage : As a child matures, and as the self gradually develops, one internalises the expectations of a large number of people. Children learn to behave according to the impressions of others. They understand that role play in each situation involves following a consistent set of rules and expectations. For example, a child at this stage is likely to be aware of the different responsibilities of people in a restaurant who together, make for a smooth dining experience. Thus, the self is mainly formed through our interactions with others and our understanding of others responses. Socialization, in this sense is a process of self-awareness.

Question 2.
Agencies of socialization.
Answer:
There are different social groups which can be seen as agencies of socialization.
1. Family : Family is the main agent of socialization. The child learns language and other basic behavioural patterns in family. Socialization through family is varied because there is no single, uniform pattern to do so. A child brought up in nuclear family will undergo different pattern of socialization. Patterns of child rearing vary across families with different caste, class, and ethnic backgrounds.

2. Peer groups : Peer groups are friendship groups made up of people of similar age. In peer groups, the interactions are reasonably egalitarian as there is a greater amount of give and take, when compared to family or school. Peer groups use informal sanctions including positive sanctions like approving gestures or laughing at your jokes, and negative sanctions like disapproving jokes, labelling or rejecting your company.

3. Schools : Schooling and education are considered as secondary agencies. School involves learning values and norms at a step higher than those learnt in a family. Skills and values like team work, discipline, conformity to authority are learnt in schools and this helps prepare students for the adult world.

4. Mass Media : One of the significant forces of socialization in modern culture is mass media. Mass media are the means for delivering impersonal communication directed to a vast audience. Mass media includes traditional print media like newspapers and magazines, electronic media like radio and television and current IT enabled media and social media. Television has an influence on children from a very young age and affects their cognitive and social development. Modern technological advancements have strengthened and changed the role of mass media. Technology has certainly increased the spread of mass media.

5. Neighbourhood : A neighbourhood community is an important agency of socialization. A neighbourhood is a geographically localized community within a larger city, town or suburb. Neighbourhoods are formed through considerable face to face interaction among members often living near one another. A neighbourhood community provides the base for an individual to extend social relations and interactions beyond the narrow limits of the home.

6. Workplace : Socialization is a life long process. Adult socialization indicates this continuous process of learning. One of the significant agents of adult socialization is the workplace.

Adult individuals spend significant amount of time at the workplace. Socialization through work place involves acquiring new skills, knowledge and behaviour patterns suitable to the requirements of the job.

Maharashtra Board Class 11 Sociology Solutions Chapter 6 Socialization

Question 3.
Resocialization.
Answer:
The process of unlearning old norms, roles, values and behavioural patterns and learning new patterns is called re-socialization. Sometimes an individual is caught in a situation where one has to break away from past experience and internalise different norms and values. Re-socialization can also be defined as a process which subjects an individual to new values, attitudes and skills according to the norms of a particular institution and the person has to completely re-engineer one’s sense of social values and norms.

The person may be in a jail, hospital, in religious organization, police, army etc. In such institutions there is total break up from the normal social life outside. A prison sentence is a good example. The individual not only has to change and rehabilitate one’s behaviour in order to return to society but must also accommodate the new norms required for living, while in prison.

3. Explain the following concept with an example.

Question 1.
Primary socialization
Answer:

  1. The most critical process of socialization happens in the early years.
  2. This learning in the early years is termed as primary socialization.
  3. Primary socialization takes place in infancy and childhood and involves intense cultural learning.
  4. A child gets acquainted with values, customs, behavioural norms and manners. It is an informal process.

Example : Family is the main agent of primary socialization. Peer group and neighbourhood is also seen as a primary socializing agency.

Question 2.
Secondary socialization
Answer:

  1. Socialization as a process is lifelong.
  2. The learning which extends over the entire life of a person is known as secondary socialization. It is a formal process of socialization.

Example : Schooling and education are considered as secondary agencies of socialization. What we learn through a formal curriculum with specific subjects and skills. Schooling involves learning values and norms at a step higher than those learnt in family.

4. (A) Complete the concept maps.

Question 1.
Maharashtra Board Class 11 Sociology Solutions Chapter 6 Socialization 1
Answer:
Maharashtra Board Class 11 Sociology Solutions Chapter 6 Socialization 2

Maharashtra Board Class 11 Sociology Solutions Chapter 6 Socialization

4. (B) State whether the following statements are true or false with reasons.

Question 1.
Socialization is a life-long process.
Answer:
This statement is True.
(i) The process of learning attitudes, norms and behaviour patterns and becoming members of different social groups like family, kin network, peer group and later, formal groups like school, professional networks etc., is a life long process.

(ii) Socialization is an ongoing process of continuous learning The birth of a child is a new experience of parenting for a couple. Similarly, older people become grandparents thus creating another set of relationships connecting different generations with each other.

(iii) Thus, socialization as a learning process is life long even though the most critical process happens in the early years but secondary socialization extends over the entire life of a person.

Question 2.
Advertisements influence consumer behaviour.
Answer:
This statement is True.

  1. Mass media has become an integral part of our day to day life. Advertisements through mass media are the means for delivering impersonal communication directed to a vast audience.
  2. Advertisements transmit information and messages which influence the behaviour of the consumer to a great extent.
  3. The use of colours, words, music, images, videos influence our behaviour and persuades us to take action. Advertisements through mass media has wider approach.

5. Give your personal response.

Question 1.
‘Breaking News’ tends to create panic or emotional responses. Why do you think this happens? Give relevant examples to illustrate.
Answer:
Many newspapers as well as some private news channels very frequently transmit news of murders, accidents, stealing, dacoity, beating, rape, economic cheating, fraud, scams, etc., as breaking news. Constant hearing of such news affects the minds of the people and it weakens the faith in ideals and values of life. This happens because breaking news get much more viewers than normal news.

Question 2.
The use of ‘unacceptable language’ is often picked up by children even if this kind of language is not used within the home. Explain how this might happen.
Answer:
Even though the new born is initiated with this learning process in family it is not the only agency of socialization. School, peer groups, neighbourhood, mass media are different social groups and social contexts which can be seen as agencies of socialization. Children pick up unacceptable language from variety of other sources like television which has strong influence on viewers. The child might hear one of his friends or someone in neighbourhood using slang words or abusing language.

Maharashtra Board Class 11 Sociology Solutions Chapter 6 Socialization

6. Answer the following question in detail (About 150-200 words).

Question 1.
You belong to a generation that has been exposed to internet. Discuss how internet has brought about positive and negative results.
Answer:
Modern technological advancements have strengthened and changed the role of mass media as an agent of socialization. Technology like internet has certainly increased the spread of mass media. People spend most of their time in touch with the world. Internet has enhanced communication and social connection. It has also increased political and civic participations. Social media allow students to learn outside of their class rooms. ‘School in the cloud’ is yet another example of how the internet and social media can help to improve global education.

Internet has helped to transmit information and create awareness about a wide range of issues and events among members of the society. It influences attitudes, values and moulds public opinion and acts as an effective way to change the society. Through the internet we can access online educational courses or training. In fact, any type of information from any part of the world can be accessed through the internet.

There is also negative impact of internet on society as – Youth access the internet and indulge in chatting, emailing, watching restricted site that leads to cyber crimes instead of creating interest in reading and creative activities. Sometimes internet may not give accurate information hence the validity and accuracy of the messages must be considered. Internet reaches the masses in developing countries, but there are many tribal, rural and poor urban people having no access to any kind of information. Communication technologies are expensive and need maintenance. Thus, internet may help to develop knowledge and spread information but it also has adverse effects on the society and have promoted values like individualism and materialism.

11th Sociology Digest Chapter 6 Socialization Intext Questions and Answers

ACTIVITY (Textbook Page No. 68)

Question 1.
Conduct a group discussion on the threatening challenge of online games like ‘Blue Whale’. Try to find answers to issues like why do children even consider participating in such games? Are parents to be blamed? What is the role of Law?
Answer:
Games like ‘Blue Whale’ has the challenges of self-harm. It exploits vulnerable people. It blocks the boundary between virtual and real world. There’s a constant competition, level up, which drive the children to perform their best amongst others.

Most games are addictive become of the challenges involved. Once the children are engrossed in it, there is no coming back and they strive hard to achieve the next level, the next goal. This sense of achievement targets the brain’s reward system and compels the gamer to perform the act again and again.

Are parents to be blamed?
Children are becoming addictive to online games because they are designed to be addictive and not because parents allow them to play too much.

What is the role of Law?
With dangerous online games like ‘Blue Whale’ claiming several innocent lives in the recent past, the supreme court has directed the centre to constitute a panel of experts to block such life-threatening games.

Maharashtra Board Class 11 Sociology Solutions Chapter 6 Socialization

Question 2.
Watch advertisements or messages on T.V. and see how effective mass media is in creating awareness against corruption, drug addiction, smoking or any other relevant social issue. (Textbook Page No. 68)
Answer:
The mass media has potential to create awareness against various issues like corruption, drug addiction, smoking etc., by propagandise simple and focused messages to large audiences repeatedly, overtime, at a low cost. They are able to reach a large heterogeneous population. Media campaigns can help in the reduction of smoking and drug addiction and have shown positive results in number of other relevant social areas. Techniques of mass media can be effectively used to counter corruption as well.

Question 3.
Do you think resocialization requires total institutions? Why? Why not? (Textbook Page No. 70)
Answer:
In the process of resocialization old behaviours are removed because they are of no use. Resocialization is necessary when a person moves to a senior care centre, goes to a boarding school or serves time in jail. I think, resocialization requires ‘total institutions’ in a new environment as they can learn new norms and unlearn existing behaviours. The most common way of resocialization occurs in a total institution where people are isolated from society and made to follow new rules and behaviours. A ship at sea military camps, religious convents, prisons or some cult organizations. They are cut off from a larger society. Members entering an institution have to leave behind their old identify to be socialized.

Question 4.
Collect data from five students regarding their experience with social networking sites (example Facebook, Snapchat, Twitter). Find out about how much time they spend online, what kinds of people they interact with, what topics are usually discussed, the uses and problems of social networking sites. Write a 100-word Report on your findings. (Textbook Page No. 71)
Answer:
With respect to overall media consumption, most students spend hours on social networking sites using mobile phones, tablets, laptops, desktops, etc. This age group restricts watching television and is considered as the largest part of change in the media landscape. Example: More three to eleven years of age group are online than in 2016, with much of this growth coming from increased use of tablets. Unsurprisingly, tablets and other portable, connected devices are also playing an important role.

Maharashtra Board Class 11 Sociology Solutions Chapter 6 Socialization

Uses:
Social networking sites allow users living at distant places within their network to connect to another thus increasing social connection, share ideas, photographs, videos, information and other happenings around the world.

Problem:

  1. Untrustworthy Member Data.
  2. Users submit inaccurate information on their profile.
  3. Leaving social networking is difficult; there are saved accounts, and ways to continue to reconnect to the site, even after an individual uninstall the account.
  4. Less time for face to face connections with family members.
  5. Being too much online diminishes our skills and can have serious side effects. These side effects are becoming more and more frequent amongst the waves of generations.

Maharashtra Board Class 11 Sociology Solutions Chapter 5 Culture

Balbharti Maharashtra State Board Class 11 Sociology Solutions Chapter 5 Culture Textbook Exercise Questions and Answers.

Maharashtra State Board Class 11 Sociology Solutions Chapter 5 Culture

1. (A) Choose the correct alternative and complete the statements.

Question 1.
Culture is ……………….
(natural / personal / adaptive)
Answer:
adaptive

Question 2.
Material culture is ……………….
(concrete / abstract / intangible)
Answer:
concrete

Maharashtra Board Class 11 Sociology Solutions Chapter 5 Culture

Question 3.
Bollywood music is an example of ……………….
(high culture / popular culture / folk culture)
Answer:
popular culture

1. (B) Correct the incorrect pair.

Question 1.
(a) Classical singing of Bhimsen Joshi – High culture
(b) Shakespeare’s literature – Folk culture
(c) Harry Potter books – Popular culture
(d) Religious group – Sub-culture
Answer:
(b) Shakespeare’s literature – High culture

1. (C) Identify the appropriate term from the given options.

(Folk Culture, Material Culture, Popular Culture)
Question 1.
Songs transmitted from one generation to the next.
Answer:
Folk Culture

Question 2.
Use of mobile phones today.
Answer:
Material Culture

1. (D) Correct underlined words and complete the sentence.

Question 1.
Belief in superstition is an example of material culture.
Answer:
Belief in superstition is an example of non-material culture.

Question 2.
E-commerce is an example of popular culture.
Answer:
E-commerce is an example of mass culture.

Maharashtra Board Class 11 Sociology Solutions Chapter 5 Culture

2. Write short notes.

Question 1.
Characteristics of Culture.
Answer:
The term culture refers to the way of life of a member of various societies or groups. Culture has the following characteristics:

  1. Culture is acquired : Culture is learnt by each member through socialization. Cultural learning takes place through experience and symbolic interactions. Culture is propagated through generations.
  2. Culture is abstract : Culture exist in the minds or habits of the members in a society. We cannot see culture but can see human behaviour.
  3. Culture is shared : Culture is shared by a group of people belonging to the same community. They share same values, beliefs and traditions. These aspects develop a sense of unity.
  4. Culture is man-made : Culture is a human product and does nothing on its own.
  5. Culture is idealistic : Culture embodies the ideas and norms of a group. It consists of intellectual, artistic and social ideas which are followed by members of the society.
  6. Culture is transmitted among the members of the society : The cultural ways are learned by persons from persons and many of them are handed down by one’s elders, parents, teachers and others.

Question 2.
Social Benefits of Culture.
Answer:
Culture has many social benefits:

  1. Fundamental benefits : Cultural experiences are opportunities for leisure, entertainment, learning and sharing experiences with others. These benefits are intrinsic to culture. They are what attracts us and the reason why we participate.
  2. Improved, learning and valuable skills for the future : In children and youth, participation in culture helps to develop thinking skills and build self-esteem, which enhance educational outcomes.
  3. Better health and well-being : Participation in culture contributes and cultural engagement improves both mental and physical health.
  4. Social solidarity and cohesion : Culture helps build social capital – the bond that holds communities together. Cultural activities such as festivals, bring people together and build social solidarity. Our diverse cultural heritage develops a feeling of pride and a sense of belonging to a wider community.

Maharashtra Board Class 11 Sociology Solutions Chapter 5 Culture

3. Differentiate between.

Question 1.
Material Culture and Non-Material Culture.
Answer:

Material Culture Non-Material Culture
(i) Material culture refers to the physical objects which are man-made. (i) Non-material culture refers to non¬physical ideas created by human beings.
(ii) Material culture is concrete and tangible in nature. (ii) Non-material culture is abstract and intangible in nature.
(iii) It consists of manufactured objects like clothing, roads, jewellery, computers, airplanes etc. (iii) It consists of norms, regulations, values, signs, symbols, knowledge, beliefs, etc.
(iv) The material aspect of culture changes very fast. (iv) Change in non-material culture is difficult and not readily accepted by society.

Question 2.
Folkways and Mores.
Answer:

Folkways Mores
(i) Folkways are mildly enforced social expectations. (i) Mores are strictly held beliefs about behaviours.
(ii) Violation of folkways is not seen as a serious threat to social order. (ii) Violation of mores is seen as a serious threat to social order.
(iii) Folkways are less deeply rooted in society and change more rapidly. (iii) Mores are more deeply rooted and change less frequently.
(iv) Folkways are customary, normal and habitual ways of a group, to meet certain needs or solving day to day problems. (iv) Mores are more serious norms and have serious binding on groups.
(v) The manner of speech, dressing, the time of meals and numerous other practices of daily life are some examples of customary practices to which an individual confirm in their personal habits. (v) Murder, stealing, lying, incest are examples of social Mores in almost all cultures.

4. Explain the following concept with suitable examples.

Question 1.
Norms
Answer:

  1. Norms are rules and behavioural expectations by which a society guides the behaviours of its members.
  2. Some norms are prescriptive and some are prescriptive norms Most norms apply universally but some norms are culture specific.
  3. Social norms are further divided into folkways and mores. Folkways are mildly enforced social expectations, while mores are strictly held beliefs about behaviours.
    Example : Folkways – the concept of appropriate dress. Mores – Religious doctrines, taboos, customs, laws, etc.

Question 2.
Folk Culture
Answer:
Folk culture refers to the culture of ordinary people particularly those living in pre-industrial societies. It is an authentic culture. It never aspire to be an art but its distinctiveness is accepted and respected.

Example : Parents expect obedience from children, the time of meals, the number of meals per day, the manner of taking meals the manner of speech; dressing; forms of etiquette and numerous other practices of daily life.

Maharashtra Board Class 11 Sociology Solutions Chapter 5 Culture

5. Complete the concept maps.

Question 1.
Maharashtra Board Class 11 Sociology Solutions Chapter 5 Culture 1
Answer:
Maharashtra Board Class 11 Sociology Solutions Chapter 5 Culture 2

6. Give your personal response.

Question 1.
Very few people make an effort to learn classical music today.
Answer:
Classical music is not popular among people today because like any other form of music one requires exposure over a period of time to become familiar. While pop music is appreciated by a large number of people with no cultural expertise.

Question 2.
It is not easy to give up superstitious beliefs.
Answer:
Superstitious beliefs are form of non-material culture which are rooted in society for many decades and centuries. Change in this aspect is not readily accepted by the society or certain sections of the society. It is rooted in society for many decades and centuries. Hence, change in these aspects is not easy

11th Sociology Digest Chapter 5 Culture Intext Questions and Answers

ACTIVITY (Textbook Page No. 61)

Question 1.
Presentation : students make groups of 5 in class and present an aspect of culture, (e.g., language, dialect, dress, folklore, dances, music, art, food habits, architecture, literature, tribal life, rural life, urban life) of any state in India.
Answer:
Students should conduct a presentation in the classroom with the help of using power point, charts to explain the various cultural elements of any one state in India.

Question 2.
Culture varies from society to society. Each Society or a group will have different culture. These cultures are sometimes overlapping and sometimes exclusive. Give examples. (Textbook Page No. 51)
Answer:
Compare culture of different states in India, how they are different in their lifestyles, food habits, dressing styles etc. Also explain by giving examples how certain elements of culture overlap or have similarities. Many cultural elements of different states are also exclusive in nature, peculiar to that region to maintain the ethnicity.

Both Gujarat and Maharashtra were created on May 1, 1960. The dialects spoken in each state are also different. In Maharashtra, the majority of the people speak the Marathi language. The same is true for the Gujarati language in Gujarat this is an example of exclusive culture.
Hindi, one of the official language of India, is a common language. This is an example of overlapping culture.

Maharashtra Board Class 11 Sociology Solutions Chapter 5 Culture

Question 3.
Observe cultural change around you and list examples of cultural lag in society. (Textbook Page No. 52)
Answer:
Make a note of cultural changes around you.
Example:

  1. Younger generations have become more independent.
  2. Indian culture today allows young men and woman to have more freedom of choice with respect to marriage partner.
  3. Impact of internet similarly, list examples of cultural lag in society.

Example of cultural lag
For example, expectant parents can use genetic engineering to select their unborn child’s eye colour or sex. However, many people view this type of genetic engineering as unethical and believe it could lead to unintended social consequences. This an example of cultural lag.

Question 4.
Look at your surrounding and list out the examples of cultural hybridisation in the areas of food, toys, religious practices, festivals, celebrations. (Textbook Page No. 59)
Answer:

  1. Burger and pizza with a pinch of Indian spices, Indianisation of Chinese food.
  2. Celebration of Valentine’s Day.
  3. Hybrid version of Barbie, fusion music, formation of new language after blending different languages etc.

Maharashtra Board Class 11 Sociology Solutions Chapter 4 Social Institutions

Balbharti Maharashtra State Board Class 11 Sociology Solutions Chapter 4 Social Institutions Textbook Exercise Questions and Answers.

Maharashtra State Board Class 11 Sociology Solutions Chapter 4 Social Institutions

1. (A) Choose the correct alternative and complete the statements.

Question 1.
A rule that prescribes marriage within a group is called ……………….
(exogamy / endogamy / polygamy)
Answer:
endogamy

Question 2.
A family that comprises at least three generation is a ………………… family.
(nuclear / joint / cohabitation)
Answer:
joint

Maharashtra Board Class 11 Sociology Solutions Chapter 4 Social Institutions

Question 3.
The 10 + 2 + 3 system is part of the ………………. system of education.
(informal / formal / universal)
Answer:
formal

1. (B) Correct the incorrect pair.

Question 1.
(a) School – Distance Education
(b) Peer group – Informal Education
(c) Health care training – Non-formal Education
(d) Family – Informal Education
Answer:
(a) School – Formal education

1. (C) Identify the appropriate term from the given options.

(Homosexual Marriage, Matrilocal, Heterosexual Marriage)
Question 1.
A married couple is expected to live at the wife’s residence.
Answer:
Matrilocal

Question 2.
A form of marriage between persons of the same sex.
Answer:
Homosexual Marriage

1. (D) Correct underlined words and complete the sentence.

Question 1.
X married Y. Later she divorced her spouse and married Z. This is an example of polygamy.
Answer:
X married Y. Later she divorced her spouse and married Z. This is an example of monogamy.

Question 2.
Mass production and factory system are found in agricultural society.
Answer:
Mass production and factory system are found in industrial society.

Maharashtra Board Class 11 Sociology Solutions Chapter 4 Social Institutions

2. Write short notes.

Question 1.
Types of family based on authority.
Answer:
On the basis of authority within family, two broad forms of family can be identified. Matriarchal Family : In matriarchal family authority rests at the hands of the mother and she is considered the head of the family. In matriarchal family descent is traced through mother’s line, known as matrilineal system. Residence of the marriage is matrilocal i.e., the bridegroom lives with the wife’s family and the name follows the mother’s line. It is matronymic. The Garo and Khasi tribes of North East India and the Nair’s of South India follow the matriarchal system.

Patriarchal Family : In patriarchal family all authority rests at the hands of the male head and the eldest male is regarded as the head of the patriarchal family. It is patrilineal i.e., descent is traced through father’s line. Residence after marriage is patrilocal. The married couples live with the husband’s family, and the name of the father’s side continues to the next generation. It is patronymic. Patriarchal family is the most widespread form of family in India and most parts of the world.

Maharashtra Board Class 11 Sociology Solutions Chapter 4 Social Institutions

Question 2.
Stages of Economy.
Answer:
Human society has evolved through various stages, depending upon the way it evolved mechanisms to adapt to changing material needs.

With respect to the changing nature of work and economy three broad stage of economy are as follows: Agriculture Revolution : From hunting-gathering and then pastoral phases, human society entered into a new stage with discovery of agriculture. With development of agriculture, food production increased. Complex division of labour, advanced trade and permanent settlement are the result of economy expansion through agricultural technology.

Industrial Revolution : Industrial revolution which happened around the middle of the 18th century, first in England transformed social and economic life like never before. It brought four notable economic changes.

  1. New forms of energy : With the pioneering invention of the steam engine in 1765 by James Watt, the use of animal and human muscle energy was significantly reduced.
  2. Centralisation of work in factories : Use of machinery gave rise to a new workplace called factory.
  3. Mass production : Industrial economy developed the manufacturing sector very fast and produced goods on a large scale.
  4. Division of labour : The factory system reduced the importance of human skills and resulted to specialised division of labour.
  5. Industrialization transformed the whole society and also created huge economic gaps in the society.

The Information Revolution : By the middle of the 20th century the nature of production started to change. The use of automated machinery drastically reduced the role of human labour in manufacturing. Three key changes were seen due to the development of computer and information technology.

  1. Tangible products to idea : The tertiary or service sector providing services and dealing with production of ideas and symbols is expanding very fast.
  2. Mechanical skills to literacy skills : The information revolution demands a new set of skills such as literacy skills – the ability to communicate, to write, to present and use computer technology.
  3. Work from anywhere : Computer technology is allowing for decentralisation of work.

Question 3.
Importance of Education.
Answer:
Education is broad process of learning that broadens an individual’s cognitive horizons and develops in them the skills to choose, evaluate and add to existing knowledge.
The functions of education can be as follows:
1. Inculcate common values and moral beliefs : Children coming from diverse family and community backgrounds gain an understanding of the common values and moral beliefs in society through school education.

2. Fosters self-discipline : Through education children learn self-discipline. They internalise the social rules that contribute to the smooth function of society.

3. Teaches specialised skills: The education system teaches specialised skills needed for a complex modern economy. For example, technical schools are specially designed to provide technical / vocational training.

4. Instils the value of achievement in children : Schools like wider society, largely operate on a meritocratic basis. Those with ability and talent achieve their just rewards.

3. Differentiate between.

Question 1.
Matriarchal Family and Patriarchal Family.
Answer:

Matriarchal Family Patriarchal Family
(i) Authority rests at the hands of the mother in a matriarchal family. She is considered the head of the family. (i) The eldest male is regarded as the head of the patriarchal family. All authority rests at the hands of the male head.
(ii) Matriarchal families follow a matrilineal system of lineage i.e., descent through mother’s line. (ii) Patriarchal family is also patrilineal i.e., descent is traced through father’s line.
(iii) Residence after marriage is matrilocal i.e., the bridegroom lives with the wife’s family. (iii) Residence after marriage is patrilocal. The married couple lives with the husband’s family.
(iv) The name follows the mother’s line. It is matronymic. (iv) The name of the father’s side continues to the next generation. It is patronymic.
(v) The Garo and Khasi tribes of North East India and the Nair’s of South India follow the matriarchal system. (v) The most widespread form of family in India and most parts of the world is patriarchal family.

Maharashtra Board Class 11 Sociology Solutions Chapter 4 Social Institutions

Question 2.
Agriculture Revolution and Industrial Revolution.
Answer:

Agriculture Revolution Industrial Revolution
(i) From hunting – gathering and then pastoral phases, human society entered into a new stage with discovery of agriculture. (i) Industrial revolution happened around the middle of the eighteenth century and transformed social and economic life.
(ii) Agricultures involved using technology of large -scale farming using ploughs harnessed to animals. (ii) Industrialisation involved using of machinery and new forms of energy.
(iii) This increased the productive power of hunting and gathering more than tenfold. (iii) This increased more mass production which turned raw materials into a wide range of goods.
(iv) griculture revolution resulted into expansion of economy through agricultural technology, complex division of labours permanent settlement and advanced trade. (iv) Industrial revolution resulted into centralisation of work in factories and specialized division of labour.

4. Explain the following concept with suitable examples.

Question 1.
Cohabitation
Answer:

  1. Cohabitation is the sharing of a household by an unmarried couple.
  2. Live in relations or cohabitation may or may not lead to marriage.
    Example : Younger generations specially in many parts of Europe and in some urban areas in India are preferring cohabitation as family relation. This is especially true among same sex couples.

Question 2.
Formal Education
Answer:

  1. Formal education is planned with a specific end in view.
  2. It involves direct schooling and instruction. Since it is provided to fulfill specific ends, formal education is limited to a specific period. Formal education has a well-defined and systematic curriculum based on aims designed according to the needs of society.

Example : Schooling and education are considered as a formal education based on formal curriculum with specific subject and skills.

5. State whether the following statements are true or false with reasons.

Question 1.
In a modernizing society the role of parents are changing.
Answer:
This statement is True.

  1. Rapid growth of divorce and changing roles of woman give rise to a new family form and relation which has led to changes in the role of parents.
  2. The average age at which people get married is also increasing. There is also an increasing trend of individuals not getting married. There is a changing role of women due to education and employment. All these changes are affecting family as an institution.
  3. In our contemporary society, the traditional belief of fathers are the breadwinners and mothers only do household chores is no longer true. With the advent of globalization, their roles are changing which is vastly different from their previous generations.

Maharashtra Board Class 11 Sociology Solutions Chapter 4 Social Institutions

Question 2.
India is in the stage of industrial revolution.
Answer:
This statement is False.

  1. India is in the stage of information revolution. The development of computer and information technology have changed the nature of work in India.
  2. The use of automated machinery has reduced the role of human labour in manufacturing. Service industries like public relations, banking and sales, media, advertising have expanded.
  3. The introduction of computer and information have changed the character of work in India.

6. Give your personal response.

Question 1.
What are your views about love marriage? Do you support it? Explain.
Answer:
The basic concept of love marriage lies in the fact that the girl or boy chooses his or her life partner. The restrictions of caste, religion, physical appearance does not apply when a person falls in love. In India these restrictions are seriously enforced which limit the number of desirable matches for a person. Also, it curbs the practice of dowry as one does not need to prove one’s worth. Therefore, I support love marriages.

Question 2.
How has the information revolution impacted your life?
Answer:
Information revolution has made our life easier. Information revolution has made it possible to do many things from the comforts of one’s own home. I can take virtual tour of museums, buildings etc. It has exposed one to different cultures. One can do all of shopping online. It has created abundance of data on every possible subject or interest.

7. Answer the following in detail (About 150-200 words).

Question 1.
Show how the role of family has changed in the present times. Illustrate with your own examples.
Answer:
Families are the nexus of activities that include parenting , employment and leisure. As society changes, families must adapt to the new structures and processes resulting from this change. One of the most striking features of modern societies has been rapid growth of divorce.

The average age at which people get married is also increasing along with an increasing trend of an individuals not getting married. The changing roles of woman through increased education and employment, has put additional pressures on the family to adapt to dual-earner, households and changing needs of child care. All these changes are affecting family as an institution.

It has given rise to new family relationship:
(i) Single-parent Family : Majority of single parent families are headed by single mothers. This may result from divorce, separation, death or by choice. Sometimes growing up in a single parent family can be a disadvantage for children.

(ii) Cohabitation : Cohabitation is the sharing of a household by an unmarried couple. Younger generations, especially in many parts of Europe and in some urban areas in India are preferring cohabitation as family relation. This is especially true among some same sex couples.

(iii) Step-parenting : As rates of divorce and remarriage is steadily on an increase, it gives rise to a new family form and relation of step-parenting. The extent of children staying in step families is increasing.

In the traditional family living, the wife had no voice in family decision making but in contemporary family she has equal power role to play. The authority has shifted from patriarchal to parents who consult their children an all-important issues before taking any decisions about them. Younger generations now claim more individuality. Change in family does not mean the complete erosion of previous norms and structure.

Maharashtra Board Class 11 Sociology Solutions Chapter 4 Social Institutions

11th Sociology Digest Chapter 4 Social Institutions Intext Questions and Answers

ACTIVITY (Textbook Page No. 41)

Question 1.
Discuss why hypogamous marriages are resisted in society. Take help of newspapers, magazines and cinema.
Answer:
Reasons for resisting hypogamous marriage. Hypergamy is a term used for the practice of a person marrying a spouse of higher caste or social status than themselves. Young women generally marry older men of higher status, with general rule that older men have more time to create wealth and status than younger men. Today such marriages are on decline, as most people marry their approximate social equals and in some parts of the world hypergamy has decreased. Also, it is becoming less common for women to marry older men though hypergamy does not require the man to be older but only of higher status.

Question 2.
Look at the matrimonial advertisements in newspapers, magazines and internet and discuss the findings. Do you think endogamy is still the prevalent norm in India? (Textbook Page No. 42)
Answer:
Religion and Caste endogamy still dominates while choosing a life partner. Women have the freedom to select a spouse in urban areas, yet, the choice can be restricted. So, in general, marriage is often seen as socially determined institutions.

Question 3.
Watch the classic movie ‘Modern Times’ made by Charlie Chaplin and have a discussion on the effects of mechanisation on human labour. (Textbook Page No. 44)
Answer:
The film ‘Modern Times’ is a comment on the desperate employment and financial conditions that people faced during the great depression conditions created, by the modern industrialization in the view of Chaplin. Modern Times’ portray Chaplin as a factory worker where he is subjected to such indignities as being forced fed by a malfunctioning ‘feeding machine’. In the movie, industry is portrayed as something bigger and more valuable than the people who work within it. Chaplin tries to point out the fact at the industrialized world functions in a way that suppresses human agency and creativity.

Maharashtra Board Class 11 Sociology Solutions Chapter 4 Social Institutions

Question 4.
Eminent personalities having achieved social prestige and position on the basis of their educational qualification. (Textbook Page No. 48)
Answer:
(i) Bhimrao Ramji Ambedkar : Dr. Bhimrao Ambedkar was born on 14th April 1891. During his childhood he was subjected to socio-economic discrimination and faced severe humiliation. Dr. Ambedkar earned his doctorates in Economics from both Columbia University and the London School of Economics. He gained reputation as a scholar for his research in Law, economics and political science. In his initial career, he worked as an economist, professor and lawyer. He was posthumous awarded the Bharat Ratna, India’s highest civilian award, in 1990.

(ii) A. P. J. Abdul Kalam : A. P. J. Abdul Kalam was born on 15th October 1931. His father was an owner of a boat, an imam of local mosque. Due to destruction in business and loss of the family fortune, Kalam’s family suffered poverty. To help his family, he started selling newspapers at an early age. Abdul Kalam completed his graduation from the Madras Institute of Technology and joined the Aeronautical Development Establishment of the Defence Research and Development Organisation (DRDO) as a scientist after becoming a member of Defence Research and Development Service (DRDS). He came to be known as the Missile Man of India’. He was the 11th President of India.

Maharashtra Board Class 11 Sociology Solutions Chapter 3 Basic Concepts in Sociology

Balbharti Maharashtra State Board Class 11 Sociology Solutions Chapter 3 Basic Concepts in Sociology Textbook Exercise Questions and Answers.

Maharashtra State Board Class 11 Sociology Solutions Chapter 3 Basic Concepts in Sociology

1. (A) Choose the correct alternative and complete the statements.

Question 1.
Society is based on ……………….
(co-operation / competition / conflict)
Answer:
Co-operation

Question 2.
Villages are a part of ……………….. community.
(rural / city / metropolitan)
Answer:
rural

Maharashtra Board Class 11 Sociology Solutions Chapter 3 Basic Concepts in Sociology

Question 3.
Family is an example of a ………………. group.
(large / primary / formal)
Answer:
primary

Question 4.
Social status refers to ……………… in a group.
(function / position / purpose)
Answer:
position

1. (B) Correct the incorrect pair.

Question 1.
(a) Family – Voluntary Group
(b) Caste – Involuntary Group
(c) Village – Primary Group
(d) Workplace – Secondary Group
Answer:
(a) Family – Involuntary Group

1. (C) Identify the appropriate term from the given options.

(Role, Folkways, Society)
Question 1.
Punctuality in class is the duty of a student.
Answer:
Role

Question 2.
In many places in India, eating with hands is a common practice.
Answer:
Folkways

Maharashtra Board Class 11 Sociology Solutions Chapter 3 Basic Concepts in Sociology

1. (D) Correct underlined words and complete the sentence.

Question 1.
Norms which can be applied in daily life are called law.
Answer:
Norms which can be applied in daily life are called standard norms.

Question 2.
Family is an example of a/an voluntary group.
Answer:
Family is an example of a/an involuntary group.

2. Write short notes.

Question 1.
Characteristics of Society.
Answer:
(i) Society includes likeness : According to Maclver ‘society’ means likeness. Social relationships exist among those who are alike in body and mind. People have similarities with regard to their needs aim, ideals, values, outlook towards life and so on.

(ii) Society includes difference : A society together with likeness is also based on differences. Differences is an important factor for a healthy society. Different types of personalities are essential in our society in order to satisfy the different needs. These differences are based on sex, age, physical strength, intelligence, talent, personality and unequal possessions of material objects and wealth.

(iii) Interdependence : Individuals in a society depend upon one another for the satisfaction of needs. One group, one nation, one community depends upon the other for its development, t Interdependence is seen in family groups as well. The existence of society depends upon different types of social relationships.

(iv) Co-operation : Every society is characterized by co-operation and division of labour. It is necessary for survival.

(v) Normative nature : In a society, social behaviour is evaluated by social control. These controlling means are known as norms. Norms control the misbehaviour or the acts which are harmful to society thus protecting the society.

(vi) Society is dynamic : No society is static. It changes continuously; old customs, traditions, I values, norms and institutions replace the new customs, traditions, values, norms and institutions.

Maharashtra Board Class 11 Sociology Solutions Chapter 3 Basic Concepts in Sociology

Question 2.
Characteristics of Primary Group.
Answer:

  1. Physical proximity : This is essential for a primary group as people have close relations with each other. Hence, they experience physical proximity.
  2. Smallness of the group : These social groups are small in size and bring out the close relations among its members.
  3. Permanence of relationship : Close relations create more unity among the members.
  4. Face-to-face relationship : These social groups are small in size and are based on greater closeness. It is useful for maintaining group stability.
  5. Similar objectives and goals : This group is homogeneous in nature. Hence, there is uniformity of objectives and goals among its members.
  6. The relationship is an end in itself: The relationships in this group are very natural.
  7. Informal control: This group is conventional and based on emotional bonds.

Question 3.
Types of Norms.
Answer:
Folkways : The term was first used by William Sumner. According to him, folkways are the recognized ways of behaving and acting in society. Example, eating using one’s fingers, eating with chopsticks, eating with fork and spoon; different ways of wearing a sari.

Mores : Mores are more rigid than folkways. They are instruments of social control and deals with higher values of people. Example, sexual relations before marriage are not permitted.

Law : Law is an important and essential element of society.
They are deliberately formulated rules of behaviour. It is universal in nature and common for all to follow. There are two types of law- Customary Law and Enacted Law.

  1. Customary law – It is not in a written form but orally transmitted. It is followed in tribal as well as in rural society.
  2. Enacted law – This law is in a written form. It is important as well as obligatory in a modern, complex and dynamic society. For example, The Hindu Marriage Act, 1955; The Domestic Violence Act, 2005.

Maharashtra Board Class 11 Sociology Solutions Chapter 3 Basic Concepts in Sociology

3. Differentiate between.

Question 1.
Primary Group and Secondary Group.
Answer:

Primary Group Secondary Group
(i) Primary group is a group in which relationships are personal, informal, face to face and intimate in nature. (i) Secondary group is a group in which relationships are impersonal, formal and contractual in nature.
(ii) This group is small in size. (ii) This group is large in size.
(iii) Relationships are personal, so physical proximity is more. (iii) Due to formal relationships there is no physical proximity between the members.
(iv) Relations are permanent. (iv) Relations are temporary.
(v) Behaviour is controlled in an informal way. (v) Behaviour is controlled in a formal way.
(vi) Example Family, peer group, neighbourhood, etc. (vi) Example Nation, State, Labour unions, etc.

Question 2.
Voluntary Group and Involuntary Group.
Answer:

Voluntary Group Involuntary Group
(i) Membership is based on choice. (i) Membership is based on birth.
(ii) It may be temporary or permanent in nature. (ii) It is mostly permanent in nature.
(iii) Individual has choice to continue or to leave the membership. (iii) One cannot leave the membership or it may be difficult to leave the group.
(iv) Example : Political parties, youth organisation, cultural association, etc. (iv) Example : Family, caste, race, religion, etc.

4. Explain the following concept with suitable examples.

Question 1.
Reference Group
Answer:
The concept of reference group was introduced by Robert Merton. A reference group is a group to which an individual or another group is compared. We use reference groups in order to guide our behaviour and attitudes that help us to identify social norms.

Reference Groups are of two types Informal and Formal.

  1. Informal reference groups are formed by the individual as per their likes, interests and attitudes.
    Example : Family, peer groups, teachers, siblings, associates, etc.
  2. Formal Reference Group are the ones that have a specific goal or mission.
    Example : Labour unions, supreme court, military units, corporations, worship place, universities, etc.

Question 2.
Role Conflict
Answer:

  1. Role conflict refers to a clash between roles.
  2. When one faces incompatibility between two or more roles at the same time or in a given situation. Role conflict is inevitable.

Example: A boss will suffer role conflict if forced to fine an employee who is also a close friend. A newly married bride experiences role conflict because she has to adjust with her in-laws, household work and office work.

Maharashtra Board Class 11 Sociology Solutions Chapter 3 Basic Concepts in Sociology

5. (A) Complete the concept maps.

Question 1.
Maharashtra Board Class 11 Sociology Solutions Chapter 3 Basic Concepts in Sociology 1
Answer:
Maharashtra Board Class 11 Sociology Solutions Chapter 3 Basic Concepts in Sociology 2

5. (B) State whether the following statements are true or false with reasons.

Question 1.
Society never changes.
Answer:
This statement is False.
1. Society is a web of social relationships. These relationships and interactions are based upon different institutions, traditions, customs, values and norms of the society.

2. Changes in any one of this is reflected in the changes in relationship and interaction among the individuals. Change is a universal phenomenon. No single society is static. Factors like, westernisation, modernisation, industrialisation, education have brought various changes in society.

3. Today, educational system, family patterns, norms, values, needs, etc., are changed. People have become more self-centred. Individual freedom, consciousness towards one’s own rights are increasing. Hence, society is changing continuously.

Question 2.
People living in a community must have awareness of sharing a way of life.
Answer:
This statement is True.

  1. Individuals are emotionally attached to their community. People those who live in a particular community occupy a definite territorial area. They share common objectives and needs.
  2. They have love and affection towards each other.
  3. This develops a sense of belongingness. Therefore, people living in a community must have awareness of sharing a way of life.

6. Give your personal response.

Question 1.
Show how folkways, mores and laws may clash with each other.
Answer:
Folkways is one of the essential elements of culture. Folkways govern our daily routine and ordinary contacts with other people. Whereas mores are considered as vital to the welfare of the group. Folkways and mores are the customary way of life and standards of right and wrong. Example: wearing clothes are mores and wearing clothes of different styles are folkways.

Laws are deliberately formulated rules of behaviour that are enforced by a special authority, e.g., there are laws that can punish people for marrying more than one person. Hindu Marriage Act, 1955.

Mores, folkways and laws are taught through the process of socialisation by various sources like family, friends, peer groups, schools, etc. However, these three clash each other in various ways. In today’s complex, competitive society, one finds it difficult to cope up with these three elements of society. Example: there is a man who belongs to a poor family and has the responsibility of marriage of his sister. Being born in a poor family, he doesn’t have enough money for his sister’s marriage. As per the laws, asking for dowry is illegal, but due to his financial condition, he has to ask for dowry from his in-laws to get his sister married. In such situation folkways, mores and law clash each other.

Maharashtra Board Class 11 Sociology Solutions Chapter 3 Basic Concepts in Sociology

Question 2.
Do you think that role conflict is inevitable in social life?
Answer:
Yes, the role conflict is inevitable in social life.
When an individual has to play several roles at a time, then it is not possible to perform one role appropriately, it is called as role conflict. In today’s society, everyone wants to achieve high status in society. Everyone wants to achieve a life of luxury and comfort. People want to earn more and more money. Expectations have been increased. In order to adjust with such competitive situation, one has to play different role in the society. That creates role conflict.

Example: A woman working as a nurse in the hospital, has to look after her sick in-laws at home, because of which she can’t pay proper attention towards her duty. A husband who has to attend urgent meeting as a manager, can’t give time to his family. One has to perform multiple roles in a complex society. That is why role conflict is inevitable in social life.

7. Answer the following in detail (About 150-200 words).

Question 1.
Identify any two secondary groups of which you are a member. Discuss any four characteristics with reference to the groups that you have named.
Answer:
Secondary groups have impersonal, formal, indirect, temporary and goal oriented relationships with large number of members. It is not possible to have regular, permanent, close and intimate relations with everyone. People meet each other only for serving specific purposes. Relations are maintained only when the specific purposes are fulfilled and people are satisfied.

People are always very busy and it is necessary to have appointments before meeting. Secondary group are heterogeneous and formal in natural. People are given time to meet but for that purpose only. People do not meet for long term goals. Free expressions of emotions, feelings and intimacy is not allowed. In secondary group, members have to follow rules and regulations strictly.

Example : (i) Student of a college
(ii) Member of NSUI – National Students Union of India (or) ABVP – Akhil Bhartiya Vidhyarthi Parishad
Characteristics of secondary group with reference to the above mentioned group. Large Size: In college or in NSUI number of students and members is large. Here, the membership is unlimited as compared to primary group.

Indirect relations : Due to large size, direct relations among all the students and members are not possible. To convey any message, we take help of modern means of communication, e.g., mobile phones, e-mail, WhatsApp, etc.

Impersonal relations : As the members are large in size personal interactions is very rarely seen. Here, we do not know each other personally. That is why, relationship is not personal.

Formal relations : Informal relations is not possible because face to face contact can’t take place. People are more goal oriented. Membership is strictly based upon laws and regulations.

Maharashtra Board Class 11 Sociology Solutions Chapter 3 Basic Concepts in Sociology

11th Sociology Digest Chapter 3 Basic Concepts in Sociology Intext Questions and Answers

ACTIVITY (Textbook Page No. 25)

Question 1.
Visit a rural, tribal or urban community and speak to 3-5 people and find out about their work, families, customs, beliefs etc. Write a report or make a short film on your mobile phone.
Answer:
Tribal, Rural and Urban Community – Work, Families, Customs, Beliefs-
(i) The Tribal Community : The tribal community is small in size. Each tribe has its own culture. They are close to nature and their life is influenced by religion. Therefore, they worship natural forces and seek assistance from the shaman and magician for solving their problems. Their economy and usage of technology is simple. This is known as subsistence economy.

(ii) Rural Community : The rural community is largely homogeneous. The main occupation of the people in this community is agriculture and non-agricultural occupations such as dairy farming, poultry, etc. This community is influenced by nature and they worship it as God or Goddess.

The rural community is influenced by the institution of family and characterized by primary relations. Joint family continues to exist in rural areas though some modification has occurred.

(iii) Urban Community : The urban community is large in size and consists of mostly nuclear families. It is a settlement of socially heterogeneous people. Occupations of the urban people are non agricultural. There is more scope for division of labour. This community is greatly impacted by artificial or man-made environment rather than natural environment on the urban community.

Question 2.
Prepare a photo essay regarding interactions observed within primary and secondary groups. Students should go around in their neighbouring localities and capture with their devices (like mobiles), the interaction patterns based on characteristics of various types of groups. How to write a photo essay? (Textbook Page No. 29)
Answer:
(Students are required to perform this activity themselves by visiting the link http://www. collectivelens.com/blog/creating-photoessay/ as a guideline.)

Maharashtra Board Class 11 Sociology Solutions Chapter 3 Basic Concepts in Sociology

Question 3.
Conduct a role play exercise to understand the concept of role conflict and role strain. For example: Working women performing various roles inside and outside the home. (Textbook Page No. 32)
Answer:
Understanding 1: Women consider that the household affairs and care for the family is their primary duty. Women are thus confronted with the challenge of playing the dual role, to excel at home, as well as at the workplace. To prove her competence on both the fronts, women are facing the problem of overwork and are often being stressed or drained of their energy. Yet, they find themselves unable to match the expectations at any of the two places, which gives rise to role conflict and role strain.

Understanding 2:
Role Conflict:
Role conflict occurs when conflicting expectations arise from two or more statuses than an individual occupies.
Maharashtra Board Class 11 Sociology Solutions Chapter 3 Basic Concepts in Sociology 3

Role Strain:
Role strain arises when conflicting expectations are built into a single status.
Maharashtra Board Class 11 Sociology Solutions Chapter 3 Basic Concepts in Sociology 4

Question 4.
List out various folkways and mores that we find in our day-to-day lives. (Textbook Page No. 33)
Answer:
Folkways: The folkways are the recognized ways of behaving and acting in society. Folkways are norms that stem from and organize casual interactions and emerge out of repetition and routines. We engage in them to satisfy our daily needs and they are most often unconscious in operation, though they are quite useful for the ordered functioning of the society.

  1. Waiting in a queue
  2. Appropriate dressing.
  3. Practice of raising one’s hand to take turns while speaking in a group.
  4. While eating using one’s fingers, eating with chopsticks, eating with fork and spoon.
  5. Different ways of wearing a sari.

Mores : “More are the popular habits and traditions when they include a judgment that are conductive to social welfare and when they exert a coercion on an individual to conform to them”.

More are stricter than folkways, as they determine what is considered moral and ethical behaviour. Mores structure the difference between right and wrong. Violation of mores results in disapproval or ostracizing. As such mores play a key role in shaping our value, beliefs, behaviour, and interactions than folkways.

  1. Religious doctrine.
  2. Sexual relations before marriage are not permitted.
  3. It is not acceptable to use drugs such as heroin and cocaine.
  4. It is expected that one will be one time for work.
  5. Talking to oneself in public is not considered normal behaviour.
  6. Nudity in public is not acceptable.

Maharashtra Board Class 11 Sociology Solutions Chapter 2 Contribution of Western and Indian Sociologists

Balbharti Maharashtra State Board Class 11 Sociology Solutions Chapter 2 Contribution of Western and Indian Sociologists Textbook Exercise Questions and Answers.

Maharashtra State Board Class 11 Sociology Solutions Chapter 2 Contribution of Western and Indian Sociologists

1. (A) Choose the correct alternative and complete the statements.

Question 1.
The Industrial Revolution took place in ………………..
(North America / Europe / Australia)
Answer:
Europe

Question 2.
Science is based on …………………
(beliefs / facts / guess work)
Answer:
facts

Maharashtra Board Class 11 Sociology Solutions Chapter 2 Contribution of Western and Indian Sociologists

Question 3.
Significant work has been done on kinship organisation in India, by female sociologist ………………
(Iravati Karve / Suma Chitnis / Neera Desai)
Answer:
Iravati Karve

Question 4.
The ……………….. stage of societal growth is characterised by explanations which are abstract but not God-centred.
(Theological / Metaphysical / Positive)
Answer:
Metaphysical

1. (B) Correct the incorrect pair.

Question 1.
(a) Abdul Rahman Ibn-Khaldun – North Africa
(b) Auguste Comte – France
(c) Harriet Martineau – England
(d) Karl Marx – Russia
Answer:
(d) Karl Marx – Germany

1. (C) Identify the appropriate term from the given options.

(Polarization. M. N. Srinivas, R. N. Mukherjee)
Question 1.
Marx argues that classes will become hostile towards each other.
Answer:
Polarization

Question 2.
The Indian sociologist who coined the term westernisation.
Answer:
M. N. Srinivas

1. (D) Correct the underlined words and complete the sentence.

Question 1.
The stage of society where empirical evidence forms the basis for explanation is the theological stage.
Answer:
The stage of society where empirical evidence forms the basis for explanation is the positive / scientific stage.

Question 2.
The book ‘Le Suicide’ was written by Hobbes.
Answer:
The book ‘Le Suicide’ was written by Emile Durkheim

2. Write short notes.

Question 1.
Contribution of G. S. Ghurye to Indian Sociology.
Answer:
1. Govind Sadashiv Ghurye was the first who introduced sociology in India after independence. Therefore, he is considered as the ‘Father of Indian Sociology’. He established ‘Indian Sociological Society’ and started the journal ‘Sociological Bulletin’.

2. Ghurye’s work on scheduled tribes, were based on the historical, administrative and social dimensions of Indian tribes. He wanted the tribals to be integrated with the wider Indian society. He has written on tribes like Mahadev Kolis in Maharashtra. His book, ‘Caste and Race in India’ is one of the most important contribution to Indian sociology.

3. Ghurye referred to the long process of Hinduisation of the tribes from different parts of India. He considered cultural unity between tribes and caste as the only means to promote integration in Indian society.

4. His book, ‘Caste and Race in India’, published in 1932 combines historical, anthropological and sociological perspectives to understand caste and kinship system in India.

Maharashtra Board Class 11 Sociology Solutions Chapter 2 Contribution of Western and Indian Sociologists

Question 2.
Types of suicide according to Durkheim.
Answer:
Suicide is a type of death carried by an individual intentionally or deliberately. According to Durkheim suicide is a social phenomenon. Following are the types of suicide.
1. Egoistic suicide : It takes place when an individual is very much self-centred and least bothered about the other members of society, e.g., it is committed by people who become introvert and have less desires to live in the company of others, suicide rates are higher for those widowed, single and divorced.

2. Anomic suicide : When situations go against the norms and values of a person. In such condition individual finds it difficult to face the situation and adjust with that, e.g., suicide of farmers.

3. Altruistic suicide : This type of suicide is different from egoistic suicide. This type of suicide means sacrificing own life for the betterment of people or society, e.g., Sati system, a patient commits suicide for the sake of family.

4. Fatalistic suicide : When an individual is under excessive control from the outside factors fatalistic suicide takes place e.g., Dowry death. According to Durkheim social situations, circumstances, factors are responsible for suicide and become a ‘social fact.’

3. Differentiate between.

Question 1.
Theological Stage and Positive Stage.
Answer:

Theological Stage Positive Stage
(i) Theological stage is the first stage of Comte’s Law of three stages. (i) Positive stage is last or third stage of Comte’s law of three stages.
(ii) Human thinking, ideas and views were influenced by spiritual and supernatural factors. (ii) This is an improved rational, scientific form of human thinking.
(iii) All societies believed that God controls all events in the world. (iii) Instead of imagination and superstitious belief, societies turn towards empirical scientific approach.
(iv) Example : Natural calamities like flood, drought etc., were the expressions of God’s anger. (iv) Example : Discoveries of Newton and Galileo, enlightement.

Question 2.
Anomic Suicide and Altruistic Suicide.
Answer:

Anomic Suicide Altruistic Suicide
(i) Anomic suicide takes place in situations where one is not able to adjust with circumstances which arise unexpectedly. (i) Altruistic suicide means, an individual commits suicide with the object of doing well for others.
(ii) This is due to economic instability and personal struggle. (ii) This is due to fanatical love for one’s own community.
(iii) It reflects a normlessness. (iii) It is value-oriented.
(iv) Example : Businessman committed suicide due economic depression or extreme prosperity. (iv) Example : Sati system (committed by Indian women in the past), Hara-kiri (committed by Japanese)

Maharashtra Board Class 11 Sociology Solutions Chapter 2 Contribution of Western and Indian Sociologists

4. (A) Complete the concept maps.

Question 1.
Maharashtra Board Class 11 Sociology Solutions Chapter 2 Contribution of Western and Indian Sociologists 1
Answer:
Maharashtra Board Class 11 Sociology Solutions Chapter 2 Contribution of Western and Indian Sociologists 2

4. (B) State whether the following statements are true or false with reasons.

Question 1.
According to Marx, capitalism gives rise to we feeling among workers.
Answer:
This statement is True.

  1. Capitalists accumulate profit through the exploitation of labour. The poverty of the workers’ class grows with increasing exploitation of labour.
  2. Economic exploitation and inhuman conditions lead to the increasing alienation of workers.
  3. The classes tend to become internally homogeneous and class struggle, more intensified and creates class solidarity and we feeling among the workers.

Question 2.
Iravati Karve has made significant contribution to the study of Kinship in India.
Answer:
This statement is True.

  1. Iravati Karve has contributed in the field of Sociology as well as Anthropology. She wrote a book ‘Kinship Organization in India’ in which she describes major kinship systems in India.
  2. Kinship is one of the concepts which is socially and culturally related with factors like family, caste and languages in India.
  3. According to her, kinship system is based on the geographical and linguistic group differences.
    Thus, Iravati Karve has made significant contribution to the study of Kinship in India

5. Give your personal response.

Question 1.
Do you think globalization has led to polarization of classes? Discuss with relevant examples of your own.
Answer:
Yes, globalization has led to polarization of classes. This has led to segregation of people in the society that may emerge from income inequality, economic restructuring etc. It leads to differentiation of groups on the basis of high income and low income. Skilled people manage to get high paying jobs while the less educated/skilled people receive low wages.

Question 2.
Do you think Kinship bonds are weakening? Give reasons for your response?
Answer:
Yes, I think as we Indians are progressing and trying to establish our nation as a developed nation, we on the other side are losing importance of our family ties. Kinship bonds means ties based on blood and marriage.
Following are some of the reasons which are axing Kinship bonds.

  1. Urbanisation, one of the major reasons of migration of people from rural to urban resulting into formation of a nuclear family.
  2. Modernisation, making individuals self-centred, career oriented simultaneously detach from family.
  3. Change in the medium of recreation, earlier it was family get together or celebration of festivals or religious ceremony now it is Cinema Hall or Visit to Mall.
  4. Increasing control of electronic gadgets like T.V., Mobile Internet, etc., which make virtual world closer but taxing to kinship bond, care and attachment.
  5. Dominance of materialistic world results into abundance of needs. Above all, todays smart and modern generation is chopping their own roots, meaning, weakening kinship bonds.

Maharashtra Board Class 11 Sociology Solutions Chapter 2 Contribution of Western and Indian Sociologists

6. Answer the following in detail (About 150-200 words).

Question 1.
You have studied about Comte’s Law of Three Stages of human thought. With reference to the first and third stage, comment on the challenges it poses for Indian society.
Answer:
Auguste Comte believed that the evolution of human mind had taken place along with the evolution of the individual mind. Comte’s social philosophy is based on the concept of three stage of human thought.
Maharashtra Board Class 11 Sociology Solutions Chapter 2 Contribution of Western and Indian Sociologists 3

Theological stage : In this stage human beings believed in supernatural and spiritual factors. It was believed that three was a control of God on all events in the world. The human mind, at this level, supposed that all phenomena was produced by the immediate action of supernatural beings. For example, all natural calamities were the expressions of God’s anger. This stage is dominated by priests and ruled by military men.
Following are the challenges which poses for Indian society:

  1. During this stage, human mind is dominated by sentiments, feelings and emotions.
  2. Certain section of Indian society believed that all actions/events happened due to power of God/ Supernatural beings.
    E.g. drought, flood, earthquake etc., natural calamities were nothing but anger of God.
  3. Explanation for all happening events are the form of myths concerning spirits and supernatural beings.
  4. During this stage, military society was basically dying and priests were dominated.
  5. In short, due to effect of theological stage there was lack of logical and orderly thinking in the Indian society.

Positive/Scientific stage : Comte says, scientific stage is an improved and scientific form of human thinking. Now, instead of imagination, we turn to observation. Since Reason and examination were basic planks of knowledge at this stage hence, one seeks to establish laws which link facts and which govern social life.

Effect of scientific stage on Indian Society:

  1. Finally, in this stage, Indian society turned towards the scientific way of thinking.
  2. Instead of imaginations, society turned towards observation, reason and examination all these were basic planks of knowledge.
  3. The concept of God started vanishing from human mind.
  4. Society adopted the scientific rational way of thinking and there is no place for any belief or superstition in it.
  5. In this way, Comte’s first and third stage affected the Indian Society.

11th Sociology Digest Chapter 2 Contribution of Western and Indian Sociologists Intext Questions and Answers

ACTIVITY (Textbook Page No. 16)

Question 1.
Discuss how ‘polarization of classes’ and ‘class solidarity’ are relevant in the present times.
Answer:
In present times, polarization of classes and class solidarity is associated with the segregation within a society which are immediate cause of emergence of income inequality, economic displacements, formation of various social groups from high income to low income, economic restructuring particularly in cities, economic inequality etc.

Maharashtra Board Class 11 Sociology Solutions Chapter 2 Contribution of Western and Indian Sociologists

Question 2.
Read newspaper articles related to caste issues (e.g. representation, atrocities, reservation) and share the findings with your class. (Textbook Page No. 19)
Answer:
Reference : Times of India (March 29, 2019)
The Indian Express (June 6, 2019)
Times of India (June 3, 2019)

Maharashtra Board Class 11 Political Science Solutions Chapter 5 Concept of Representation

Balbharti Maharashtra State Board Class 11 Political Science Solutions Chapter 5 Concept of Representation Textbook Exercise Questions and Answers.

Maharashtra State Board Class 11 Political Science Solutions Chapter 5 Concept of Representation

1A. Choose the correct alternative and complete the following statements.

Question 1.
Ancient Greece had ___________ (dictatorship, direct democracy, indirect democracy, monarchy)
Answer:
Direct democracy

Maharashtra Board Class 11 Political Science Solutions Chapter 5 Concept of Representation

Question 2.
The oldest representative assembly in the world is ___________ (House of Commons, House of Lords, Senate, House of Representative)
Answer:
House of Commons

1B. State the appropriate concept for the given statements.

Question 1.
The political system is where people elect representatives to govern themselves.
Answer:
Representative Democracy

1C. Find the odd word in the given set.

Question 1.
The Indian National Trade Union Congress, All India Kisan Sabha, National Students Union of India, Indian National Congress
Answer:
Indian National Congress (it is a political party)

2. Complete the concept maps.

Question 1.
Maharashtra Board Class 11 Political Science Solutions Chapter 5 Concept of Representation 2 Q1
Answer:
Maharashtra Board Class 11 Political Science Solutions Chapter 5 Concept of Representation 2 Q1.1

3. Explain the correlation between the following.

Question 1.
Governmental and Non-Governmental Organizations.
Answer:
Governmental organizations are public organizations that have a formalized structure. They are formed by election or nomination. They have legal status in terms of their jurisdiction. They are more concerned with political and administrative aspects.

Maharashtra Board Class 11 Political Science Solutions Chapter 5 Concept of Representation

However, such organizations due to their structure and scope may not be able to satisfy the concerns of different sections of the population or to represent various interests and causes. This leads to people who are devoted to the cause coming together as non-profit groups and further their cause. NGO’s work in the field of political and environmental awareness, the welfare of the elderly/women/children/disabled, etc., for e.g., Green Peace (environment), Help Age (senior citizens), CRY (children), AGNI (Political awareness), PFA (animals).

4. Express your opinion of the following.

Question 1.
Pressure groups are different from political parties.
Answer:
I agree with the statement.

  • The political parties are part of the governmental system. They seek to influence government policy from the inside. A pressure group tries to influence the government from the outside. They do not stand for elections or aim to become members of the legislature/ government.
  • Political parties have a broad agenda. They seek to represent the people for political, social, economic, cultural, and other concerns. Pressure groups usually have a narrow focus. They focus on specific issues or agitations for a specific cause e.g., the environment.

5. Answer the following in detail with reference to the given points.

Question 1.
What is meant by representation? Explain the various methods of representation?
(a) Meaning
(b) Electoral
(c) Non-electoral
(d) Non-official
Answer:
(a) Meaning: The concept of representation is important in any democracy.
Today, most countries have large territories and populations. Hence, direct democracy is not possible. The form of democracy today is indirect democracy or representative democracy. People elect representatives among themselves to govern the country for e.g., in India, Members of Parliament (MP’s), Members of State Legislative Assemblies/ Councils (MLA’s, MLC’s), of corporations, etc., are all our representatives.

(b) Electoral Method: Persons are directly or indirectly elected by the citizens to govern them as members of representative assemblies e.g., General elections to Lok Sabha, Assembly elections.

(c) Non-electoral Method: Representatives occupy their position through nomination or appointment for e.g., President of India appoints 12 Members to the Rajya Sabha.

(d) Non-official Method: Civil society represents the people through various pressure groups like trade unions, student groups, peasant organizations.

Maharashtra Board Class 11 Political Science Solutions Chapter 5 Concept of Representation

6. Suggest ways by which you can encourage people to vote in elections.
Answer:

  • NGO’s such as AGNI have special programmes designed to encourage people to exercise their franchise.
  • Street plays, flash mobs at railway stations, talks in colleges about the importance of voting.
  • Voter enrollment drives to encourage youngsters to vote.
  • Advertisements, especially involving celebrities as ‘ambassadors’ for the franchise.
  • In some countries of the world, the franchise is compulsory.

Activity (Text Book Page No. 44)

Question 1.
Write the history of anyone national political party in India.
Answer:
Indian National Congress
Indian National Congress was founded on 28th December 1885 due to the efforts of A.O. Hume, to act as a platform for civil and political dialogue among educated Indians. The first session, held in Bombay with 72 delegates in attendance, elected W.C. Banerjee as its first President. Members were mainly from the Bombay and Madras Presidencies such as Dadabhai Naoroji, Dinshaw Wacha, Pherozshah Mehta, and others. During its early phase, the Congress was led by the Moderates.

The party first split at the Surat session (1907) into two groups i.e., Moderates and Extremists (led by Bal Gangadhar Tilak). The party began to endorse the policy of “Swaraj” (Self-rule) and “Swadeshi” (of our own country), After the death of Lokmanya Tilak, the leadership of the Congress passed into the hands of Mahatma Gandhi. His philosophy was based on the ideals of Satyagraha and Ahimsa. Various movements were organized by Gandhiji such as Non-Cooperation Movement (1920’s), Civil Disobedience (1930’s), and Quit India Movement (1942).

Maharashtra Board Class 11 Political Science Solutions Chapter 5 Concept of Representation

The INC has dominated most of India’s political landscape since Independence. The period 1947-1967 is described as the One-Party Dominant System (OPDS) of the INC. However, Congress dominance has declined. In the UPA government (2004 – 2014) the INC was one of the major parties. At present, it is the main opposition party (2019).

Maharashtra Board OCM 11th Commerce Solutions Chapter 4 Forms of Business Organisation – I

Balbharti Maharashtra State Board Organisation of Commerce and Management 11th Textbook Solutions Chapter 4 Forms of Business Organisation – I Textbook Exercise Questions and Answers.

Maharashtra State Board 11th Organisation of Commerce and Management Solutions Chapter 4 Forms of Business Organisation – I

1. (A) Select the Correct option and rewrite the sentence

Question 1.
A sole trading concern ensures ……………….. business secrecy.
(a) maximum
(b) minimum
(c) limited
Answer:
(a) maximum

Question 2.
The members of Hindu undivided family business are called ………………..
(a) carpenter
(b) co-parcener
(c) parceners
Answer:
(b) co-parcener

Maharashtra Board OCM 11th Commerce Solutions Chapter 4 Forms of Business Organisation – I

Question 3.
The head of Joint Hindu Family Business is called as ………………..
(a) KARTA
(b) owner
(c) manager
Answer:
(a) KARTA

Question 4.
Registration of partnership firm is ………………. in Maharashtra.
(a) voluntary
(b) compulsory
(c) easy
Answer:
(b) compulsory

Question 5.
The liability of the shareholders in Joint Stock Company is ………………
(a) limited
(b) unlimited
(c) restricted
Answer:
(a) limited

Question 6.
A Joint Stock Company is an artificial person created by ………………….
(a) Law
(b) Articles
(c) Memorandum
Answer:
(a) Law

Question 7.
Registration of a Joint Stock Company is ………………..
(a) compulsory
(b) free
(c) not required
Answer:
(a) compulsory

Question 8.
Liability of member of a Co-operative Society is ………………
(a) limited
(b) restricted
(c) maximum
Answer:
(a) limited

Question 9.
Indian Co-operative Society’s Act was passed in ………………
(a) 1912
(b) 1913
(c) 1911
Answer:
(a) 1912

Question 10.
…………………. acts as a signature of the company.
(a) Common seal
(b) Common sign
(c) Common image
Answer:
(a) Common seal

1. (B) Match the pairs

Group A Group B
(a) Private Company (1) Karta
(b) Public Company (2) Local Market
(c) Common Seal (3) 1932
(d) Partnership Act (4) Maximum 200 members
(e) Joint Hindu Family Firms (5) One Man Show
(F) Subject-matter of insurance (6) Minimum Seven members
(7) Minimum 10 members
(8) Signature of Company
(9) Maximum 100 members
(10) Manager

Answer:

Group A Group B
(a) Private Company (4) Maximum 200 members
(b) Public Company (6) Minimum Seven members
(c) Common Seal (8) Signature of Company
(d) Partnership Act (3) 1932
(e) Joint Hindu Family Firms (1) Karta

1. (C) Give one word/phrase/term.

Question 1.
An elected body of representatives of co-operative Society for its day to day administrations.
Answer:
Managing Committee

Question 2.
The owner is the sole manager and decision maker of his business.
Answer:
Sole Trader

Question 3.
One man show type of business organisation.
Answer:
Sole trading concern

Question 4.
The members of the Joint Hindu Family firm.
Answer:
Co-parceners

Question 5.
A partner who gives his name to partnership firm.
Answer:
Nominal partner

Question 6.
There is free transferability of shares in this company.
Answer:
Public Company

Maharashtra Board OCM 11th Commerce Solutions Chapter 4 Forms of Business Organisation – I

Question 7.
A partnership agreement in writing.
Answer:
Partnership Deed

Question 8.
The motto of the co-operative society.
Answer:
Service

Question 9.
An organization which is service oriented.
Answer:
Co-operatives Society

1. (D) State True or False

Question 1.
Sole trader is the decision maker of the business.
Answer:
True

Question 2.
Sole trading concern operates in local markets.
Answer:
True

Question 3.
Sole proprietorship is useful for small business.
Answer:
True

Question 4.
The liability of KARTA is unlimited.
Answer:
True

Question 5.
The maximum number of members is unlimited in Joint Hindu Family Firm.
Answer:
True

Question 6.
Joint Stock company can raise huge amount of capital.
Answer:
True

Question 7.
There is a separation of ownership and management in Joint Stock Company.
Answer:
True

Question 8.
Board of Directors manage the business of Joint Stock Company.
Answer:
True

Question 9.
Partnership agreement may be oral or written.
Answer:
True

Question 10.
In partnership firm, the liability of every partner is limited, joint and several.
Answer:
False

Question 11.
The main motto of co-operative society is to render services to its shareholders.
Answer:
False

Question 12.
The membership of a co-operative society is compulsory.
Answer:
False

1. (E) Find the odd one

Question 1.
Sole proprietorship, Joint Hindu Family, Non-Government Organization (NGO), Partnership firm.
Answer:
NGO

Question 2.
Active partner, Shareholder, Nominal partner, Secret partner.
Answer:
Shareholder

1. (F) Complete the sentences

Question 1.
Private sector enterprises are owned and managed by the …………………
Answer:
Private entities

Question 2.
There is only one owner in …………………
Answer:
Sole Trading Concern

Question 3.
Admission of new individual into existing business has given birth to …………………
Answer:
Partnership Firm

Question 4.
A partner who takes active participation in the day to day working of the business is known as …………………
Answer:
active partner

Question 5.
When there is no provision in partnership agreement regarding time period for partnership then it is known as …………………
Answer:
Partnership at will

Question 6.
The property of JHF business is jointly owned by the …………………
Answer:
KARTA

Question 7.
The management of Co-operative society is based on …………………
Answer:
democratic principles

Question 8.
The rule for voting in Co-operative society is …………………
Answer:
one member one vote

Question 9.
The rule for voting in Joint Stock company is …………………
Answer:
one share one vote

Question 10.
The face value of the shares of Co-operative society is very …………………
Answer:
less

Maharashtra Board OCM 11th Commerce Solutions Chapter 4 Forms of Business Organisation – I

Question 11.
Consumer’s co-operatives are formed by the …………………
Answer:
consumers

Question 12.
Registration of Joint Stock Company is compulsory according to the Companies Act …………………
Answer:
2013

1. (G) Complete the following table

Question 1.
(Public company, Private company, Co-operative Society, Partnership Firm, Sole Trading Concern)

Group A Group B
(i) Minimum 2 and maximum 200 ……………..
(ii) Minimum 10 and maximum no limit …………….
(iii) ……………… Minimum 7 and maximum unlimited
(iv) Form of business organisation having only one member …………………
(v) Minimum 2 and maximum 50 ………………..

Answer:

Group A Group B
(i) Minimum 2 and maximum 200 Private Limited Compmay
(ii) Minimum 10 and maximum no limit Co-operative Society
(iii) Public company Minimum 7 and maximum unlimited
(iv) Form of business organisation having only one member Sole Trading Concern
(v) Minimum 2 and maximum 50 Partnership Firm

1. (H) Answer in one sentences

Question 1.
What is Sole Trading Concern?
Answer:
Sole Trading Concern is a type of business which is owned, managed and controlled by one person.

Question 2.
What do you mean by partnership firm?
Answer:
A business owned and managed by two or more persons sharing profits and losses is called a partnership firm.

Question 3.
What is the meaning of Joint Stock Company?
Answer:
Joint Stock Company is an artificial person created by law, having an independent legal status, owned by shareholders and managed by Board of Directors.

Question 4.
What is Joint Hindu Family business?
Answer:
A Joint Hindu Family is a form of business organization which runs from one generation to another according to the Hindu Law.

Question 5.
What do you mean by Co-operative Society?
Answer:
Co-operative Society is a voluntary association of individuals which is formed for providing services to members.

Question 6.
What do you mean by minor partner?
Answer:
A minor partner is a partner who is admitted into the partnership firm for the benefit of the firm with the consent of all partners.

Question 7.
What is Quasi Partner?
Answer:
Quasi partner is a partner of the partnership firm who has retired from the firm but has left his capital behind in the firm.

Question 8.
What do you mean by partner-in-profits only?
Answer:
A partner-in-profits only is a partner who gets into an agreement to share only the profits of the partnership firm and not the losses.

Question 9.
What do you mean by general partnership?
Answer:
General partnership is a form of partnership where, the liability of all the partners is unlimited, joint and several. Every partner has an equal right and it can be formed under the Partnership Act of 1932.

Question 10.
What is the meaning of Private company?
Answer:
A Private Limited company is a company which by its articles restricts the right to transfer share, limits the maximum number of members to 200.

Question 11.
What do you mean by Public company?
Answer:
A public company means a company which is not a private company.

1. (I) Correct the underlined word and rewrite the following sentences.

Question 1.
In Public company, shares are not freely transferable.
Answer:
In Private company, shares are not freely transferable.

Question 2.
In Private company, there are minimum 3 (Three) directors.
Answer:
In Private company, there are minimum 2 (Two) directors.

Maharashtra Board OCM 11th Commerce Solutions Chapter 4 Forms of Business Organisation – I

Question 3.
Registration of Joint Stock company is not compulsory.
Answer:
Registration of Joint Stock company is compulsory.

Question 4.
There is less secrecy in Sole Trading concern.
Answer:
There is maximum secrecy in Sole Trading concern.

Question 5.
In Partnership firm, minimum three members are required.
Answer:
In partnership firm, minimum two members are required.

Question 6.
In Joint Hindu Family business, the senior most member of family is called as Co-parcener.
Answer:
In Joint Hindu Family business, the senior most member of family is called as Karta.

Question 7.
Indian Partnership Act, 1940 is applicable in India.
Answer:
Indian Partnership Act, 1932 is applicable in India.

2. Explain the following terms/concepts

Question 1.
Sole Trading Concern.
Answer:

  1. It is a form of business organization which is owned, managed and controlled by one person.
  2. It need not be registered.
  3. It does not have a legal status i.e. It does not have a stable life.
  4. Maximum secrecy can be maintained in Sole Trading concern.

Question 2.
Partnership Firm.
Answer:

  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.

Question 3.
Joint Hindu Family Firm.
Answer:

  1. It is a form of business organization which is carried from one generation to another generation.
  2. It comes into existence by operation of Hindu Law.
  3. This form of organization is found in India only.
  4. The seniormost member of the family is called ‘Karta’ while other members are called ‘Co-parceners’.

Question 4.
Co-operative Society.
Answer:

  1. It is a voluntary association of individuals which is formed for providing services to members.
  2. Its main motto is ‘service’ rather than ‘profit’.
  3. It runs on principle of ‘One member One Vote’.
  4. It enjoys an independent legal status, distinct from its members.

Question 5.
Joint Stock Company.
Answer:

  1. It is an incorporated association created by law, having an independent legal status, owned by shareholders and managed by Board of Directors.
  2. The main motive of Joint Stock company is maximisation of profit.
  3. It works as principle of “One share One vote”.
  4. It has to follow Indian Companies Act, 2013.

Question 6.
Karta.
Answer:

  1. Karta is a seniormost member of the family, who runs the Joint Hindu Family Business.
  2. The Karta has unlimited liability in such type of business.
  3. Karta has the right to manage the business.
  4. Karta need not consult any body about business decisions.

Question 7.
Managing Committee.
Answer:

  1. Managing committee is a group of members of a Co-operative society, who looks after the working of Co-operative society.
  2. They are elected by the shareholders of Co-operative society.
  3. All important decisions are taken by the managing committee.
  4. In short, they look after day to day administration of the Society.

Question 8.
Nominal Partner.
Answer:

  1. A partner who only lends his name and reputation to the partnership firm is called as nominal partner.
  2. He is simply obliging his friends by allowing the firm to use his name as a partner.
  3. He may or may not be given any share in the profits of the firm.
  4. He does not contribute to the capital of the business.
  5. He is liable to the debts of the firm.

3. Study the following case/situation and express your opinion

1. Mr. Raghunath is running business from last 30 years. This business is ancestoral business of Mr. Raghunath. Kiran and Naman, two sons of Mr. Raghunath are helping him along with their wives.

Question 1.
Find out the type of business.
Answer:
Joint Hindu Family Firm.

Question 2.
Who is Raghunath?
Answer:
Raghunath is the Karta.

Maharashtra Board OCM 11th Commerce Solutions Chapter 4 Forms of Business Organisation – I

Question 3.
What Kiran and Naman are called?
Answer:
Kiran and Naman are called as co-parceners.

2. Mr. Sawant a Chartered Accountant by profession and Mrs. Tambe, an Architect by profession running a firm namely ‘ST Firms’ in Nagpur.

Question 1.
Identify the form of business organisation in the above examples.
Question 2.
Is it a registered organisation?
Question 3.
What is the Profession of Mr. Sawant?

4. Distinguish between the following

Question 1.
Private Limited Company and Public Limited Company
Answer:

Private Limited Company Public Limited Company
(1) Meaning A Private Limited Company is a company which by its articles, restricts the right to transfer share, limits the maximum number of members to 200 and prohibits the issue of prospectus. A Public Company means a company, which is not a Private Company.
(2) Name of the Company Name of the company must end with the word ‘Private Limited’. Name of the company must end with the word ‘Limited’.
(3) Number of Members There are minimum 2 members. Maximum members are 200. There are minimum 7 members. Maximum members are unlimited.
(4) Transfer of Shares Shares of the company are not freely transferable. Shares of the company are freely transferable.
(5) Issue of Prospectus The company cannot issue prospectus. Statement in lieu of prospectus is issued. The company has to issue prospectus compulsory.
(6) Number of Directors Minimum 2 Directors are needed in a Private Limited Company. Minimum 3 Directors are needed in a Public Limited Company.
(7) Statutory Meeting A Private Limited Company need not hold a Statutory Meeting. A Public Limited Company must hold a Statutory Meeting compulsorily.
(8) Capital Minimum paid up capital is one lakh rupees. Minimum paid up capital is five lakh rupees.
(9) Commencement of Business The business can be started after getting ‘Incorporation Certificate’. The business can be started after getting ‘Commencement Certificate’.

Question 2.
Sole Trading Concern and Partnership Firm.
Answer:

Sole Trading Concern Partnership Firm
(1) Meaning Sole proprietorship is owned and controlled by one person. Partnership firm is owned and controlled by two or more persons called as ‘Partners’.
(2) Formation Sole trading concern can be formed easily. It is started as soon as the owner decides. Partnership firm is formed by an agreement between two or more persons.
(3) Numbers of Members Sole trading concern is owned by a single person. Minimum 2 members are needed for starting business. The maximum number is 50.
(4) Registration There is no need for registration of sole trading concern. A partnership firm may or may not be registered. However, it is always desirable for the firm to be registered. It is compulsory in Maharashtra.
(5) Secrecy It is possible to have maximum business secrecy. Secrecy is shared among all the partners.
(6) Liability Liability of a sole trader is unlimited Liability of a partner is unlimited, joint and several.
(7) Management The sole trader looks after management of business. He is manager of the business. All partners take part in management of the firm according to their skills.
(8) Capital The entire capital is contributed by the sole trader, comparatively limited. Partners contribute capital to the firm, comparatively more.
(9) Act/Law There is no special Act governing the Sole Trading concern. Partnerships are governed by the Indian Partnership Act, 1932.
(10) Sharing of Profit The sole trader alone enjoys all the profits of business. Partners share the profits of business as per the ratio given in the agreement.
(11) Risk In this form of business organization, the risk is assumed by sole trader alone. In partnership firm, the risk is shared by all the partners.
(12) Disputes There is no room for disputes among owners, as there is only a single owner. There can be disputes among partners.

Question 3.
Partnership Firm and Joint Hindu Family.
Answer:

Partnership Firm Joint Hindu Family
(1) Meaning Partnership firm is controlled by two or more persons called as ‘Partners’. In Joint Hindu Family Firm, the Joint Hindu Family conducts business according to Hindu Laws.
(2) Number of Members Minimum two members are needed for starting business. The maximum number is fifty. Membership of the firm depends upon the birth and death in the family. There is no limit on membership. A person adopted into the family also becomes a member.
(3) Registration Registration is not compulsory in India, but it is compulsory in Maharashtra. Registration is not compulsory.
(4) Liability The liability of partners is unlimited, joint and several. Karta has unlimited liability and Co-parceners have limited liability.
(5) Capital Comparatively more, as it is contributed by all partners. The whole capital comes from ancestral property.
(6) Secrecy Secrets share by all partners. Secrecy can be maintained within family.
(7) Management All partners takes part in management of the firm according to their skills. Karta looks after the management of the business. All Co-parceners follow his decision.
(8) Stability Stability of business is affected by death, lunacy or insolvency of a partner. Comparatively, more stable as business is not affected by death of Karta or Co-parceners.
(9) Act Partnerships are governed by the Indian Partnership Act, 1932. Joint Hindu Family firm follows the Hindu Succession Act, 1956.
(10) Formation Partnership firm is formed by an agreement between two or more persons. Joint Hindu Family Firm comes into existence by operation of Hindu Laws.
(11) Sharing of Profits/ Losses The profits and losses are shared by partners as per the ratio given in the agreement. The profits and losses are shared between Karta and Co-parceners.
(12) Inspection of books of Accounts A partner has a right to inspect books of accounts of the firm. A co-parcener has no right to inspect books of accounts of the firm.
(13) Implied Authority Every partner has implied authority to act on behalf of the other partners. Karta has implied authority to act on behalf of the firm.

Maharashtra Board OCM 11th Commerce Solutions Chapter 4 Forms of Business Organisation – I

Question 4.
Co-operative Society and Joint Stock Company.
Answer:

Co-operative Society Joint Stock Company
(1) Meaning Co-operative Society is a voluntary association of individuals which is formed for providing services to members. Joint Stock Company is an incorporated association created by law, having an independent legal status, owned by shareholders and managed by board of directors.
(2) Number of Members Minimum ten members and maximum number of members is unlimited. Private company-

Minimum – 2

Maximum – 200

Public company-

Minimum – 7

Maximum – No limit

(3) Capital A Co-operative society has less capital as compared to Joint Stock company. Joint Stock company has large capital.
(4) Management Managing Committee manages Co-operative society. Board of Directors manages Joint Stock company.
(5) Act Co-operative Societies have to follow Co-operative Societies Act, 1912. In Maharashtra, the societies have to follow Maharashtra State Co-operative Societies Act, 1960. Companies have to follow Indian Companies Act, 2013.
(6) Formation Formation of a Co-operative society is comparatively cheaper and easier. Formation of a Joint Stock Company is costly, difficult and time – consuming.
(7) Voting Right The principle of “One member One vote” is followed. The principle of “One share One vote” is followed.
(8) Motto The main motto of a Co-operative society is to give services to the people. The main motto of Joint Stock company is to make maximum profit.
(9) Transferability of Shares Shares are not transferable. They can be surrendered to the society. Shares of a Public Company are freely transferable.
(10) Remuneration Members of Managing Committee work on honorary basis. Board of Directors are paid salary and given fees for attending board meetings.
(11) Area of Business Normally, the co-operatives have a limited area of business. Companies have a larger area of business operation.
(12) Proxies In a Co-operative society, proxies are not allowed in the meetings. In a Joint Stock company, proxies are allowed to vote in the meetings.

Question 5.
Joint Hindu Family Firm and Joint Stock Company.
Answer:

Joint Hindu Family Firm Joint Stock Company
(1) Meaning In Joint Hindu Family Firm, the Joint Hindu Family conducts business according to Hindu Laws. Joint Stock Company is an incorporated association created by law, having an independent legal status, owned by shareholders and managed by Board of Directors.
(2) Number of Members Membership of the firm depends upon the birth and death in the family. There is no limit on membership. Private company-

Minimum – 2

Maximum – 200

Public company-

Minimum – 7

Maximum – No limit

(3) Registration Registration is not required Registration is compulsory.
(4) Liability Karta has unlimited liability and Co-parceners have limited liability. The liability of shareholders is limited upto the extent of unpaid amount on shares by them.
(5) Capital The whole of ancestral property used as capital. The company has huge capital.
(6) Secrecy Secrecy can be maintained within the family. Books of accounts have to be published. Business secrecy cannot be maintained.
(7) Management Karta manages the business and he is assisted by co-parceners. Board of Directors manages the Joint Stock company.
(8) Government Control There is limited government interference. There is strict government control.
(9) Act Joint Hindu Family Firms are governed by the Hindu Succession Act, 1956. Joint Stock Companies are governed by Indian Companies Act, 2013.
(10) Formation It is comparatively easy to form. Formation of a Joint Stock Company is difficult, costly and time-consuming.
(11) Legal Existence A Joint Hindu Family firm does not have a separate legal existence independent of its members. A Joint Stock Company has a separate legal existence. It is distinct from its members.
(12) Minor Member Minors can become a member of the firm. Minors cannot become a member of the company.

Question 6.
Co-operative Society and Partnership Firm.
Answer:

Co-operative Society Partnership Firm
(1) Meaning Co-operative Society is a voluntary association of individuals which is formed for providing services to its members. Partnership firm is formed by two or more persons to do business and share profits.
(2) Number of Members Minimum ten persons and maximum no limit. Minimum two persons and maximum fifty persons.
(3) Registration It is compulsory. It is not compulsory in India, but compulsory is Maharashtra.
(4) Liability Liability of members is limited upto the extent of unpaid amount on shares held by them. Liability of partners is unlimited, joint and several.
(5) Secrecy It is not possible to maintain secrecy in a Co-operative Society. It is possible to maintain secrecy to some extent in the firm.
(6) Management Managing Committee manages the society according to its bye-laws. All partners are involved in the management of the firm.
(7) Stability Stability is not affected by death, insolvency or lunacy of a member. Stability of a firm is affected by death, insolvency or lunacy of a partner.
(8) Government Control There is a lot of government supervision and control. There is minimum government supervision for a partnership firm.
(9) Act Co-operative Societies have to follow Partnership firms are governed by the Indian Co-operative Societies Act, 1912. In Maharashtra, the societies have to follow Maharashtra Co-operative Societies Act, 1960. Indian Partnership Act, 1932.
(10) Motive The motive is to give maximum services to the people The motive is to earn profits.
(11) Legal Status A Co-operative Society enjoys an independent legal status, distinct from its members. Partnership firms do not have an independent legal status. Partners and the firm are one and the same.
(12) Transfer of Shares Members can surrender shares to the society. Partners cannot transfer the shares without the consent of other partners.

5. Answer in brief

Question 1.
State any four features of Sole Trading Concern.
Answer:
(i) Suitable for some Special Business : Sole trading concern is suitable for business where personal attention and individual skill is needed e.g., Beauty parlour, groceries, fashion designing, sweet shops, tailoring, restaurants etc.

(ii) Unlimited Liability : Liability of the sole trader is unlimited. In case business assets are not sufficient to meet business expenses, private property of the sole trader will be used. There is no difference made between private property and business property of sole trader.

(iii) No Sharing of Profits and Risks : A sole trader enjoys all the profits of business. As he is the single owner of business he assumes full responsibility in business. He alone bears all the losses or risks involved in business.

(iv) Business Secrecy : Maximum business secrecy can be maintained in a sole trading concern. A sole trader is responsible only to himself. He need not discuss any matter of business with outsiders. Moreover, there is no legal compulsion for sole trader to publish books of accounts of business.

Question 2.
State any four types of partners.
Answer:
The different types of partners are:
(i) Active or Working Partners : In practice one or two partners take active part in the management. Such partners are called active or working partners. They contribute capital, shares profits or losses, and has unlimited, joint and several liability. They take an active interest in the day to day working of the firm. These partners are also known as ordinary / general / actual partners.

(ii) Dormant or Sleeping Partners : A dormant or sleeping partner is one who contributes capital to the firm. He does not take any active part in the management of the firm. He shares the profits and losses of the firm like any other partner. He voluntarily surrenders the right of management. However, he is liable for the debts of the firm.

(iii) Nominal Partners : A nominal partner is one who does not contribute any capital to the firm. He lends his name to the firm. He is simply obliging his friends by allowing the firm to use his name as a partner. He may or may not be given any share in the profits of the firm. His goodwill is used to attract business. However, he is liable for the debts of the firm.

(iv) Minor as Partner : According to the Indian Contract Act 1872, a person below 18 years is called a minor. But according to the Indian Partnership Act 1932, a minor can be admitted for the benefit of the firm with the consent of all other partners. He has a right to inspect the books of accounts. Minor partner has limited liability and is not liable for losses. He has the option to continue as a full-fledged partner or discontinue as a partner on attaining the age of majority. If he wishes to discontinue, he must give a public notice within 6 months from the age of majority.

Question 3.
Describe any four types of Co-operative Society.
Answer:
Types of Co-operative Society are as follows:
(i) Consumer Co-operative Societies : A consumer co-operative is a business owned by its customers. They purchase in large quantities from wholesalers and supply in small quantities to customers. Goods are provided to buyers at reasonable prices and also provide services to them. Members get a share in the profit. The consumer society is formed to eliminate middlemen from distribution process e.g.-Apana Bazar, Sahakari Bhandar.

(ii) Credit Co-operative Societies : Members pool their savings together with the aim of obtaining loans from their pooled resources for productive purposes and non-productive purposes. They may be established in rural areas by agriculturist or artisans called as a Rural Credit Society. They may be established by salary earners or industrial areas called as Urban Banks, Salary Earners Society or Workers Society.

(iii) Marketing Co-operatives Societies : These co-operatives find better markets for members produce. They also provide credit and other inputs to increase members production levels. They perform marketing functions such as standardising, grading, branding, packing, advertising etc. The proceeds are then distributed among members depending on the quantities sold.

(iv) Co-operative Farming Societies: Farmers voluntarily come together and pool their land. The agricultural operations are carried out jointly. They make use of scientific method of cultivation.

Maharashtra Board OCM 11th Commerce Solutions Chapter 4 Forms of Business Organisation – I

Question 4.
State any four merits of Joint Hindu Family Firm.
Answer:
Merits of Joint Hindu Family are as follows:
1. Easy Formation : Joint Hindu Family Firm can be easily formed. The formation is simple. Registration is also not compulsory. There is no limit on minimum or maximum members in the business. Family members become co-parceners by birth in the family.

2. Quick Decision : Only the Karta is involved in the decision making process. This helps to take quick decisions in business. If decisions are taken quickly there can be prompt actions.

3. Business Secrecy : Complete business secrecy can be maintained. All decisions are taken by Karta only. Co-parceners cannot even inspect books of accounts. There is no compulsion to publish books of accounts.

4. Co-parceners Liability : The liability of co-parceners is limited. It is to the extent of their share in Joint Family Business. Private property of co-parceners cannot be attached to business property.

Question 5.
State any four demerits of Joint Stock Company.
Answer:
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.

6. Justify the following statements

Question 1.
The Liability of a ‘Sole trader’ is Unlimited.
Answer:

  1. One of the main features of a sole traders is unlimited liability.
  2. If the sole trader becomes insolvent and if his business assets are insufficient to pay off his business debts, he will have to use his private property in order to pay off his creditors.
  3. There is no distinction between business property and private property in case of a sole trading concern.
  4. Thus, liability of a sole trader is unlimited.

Question 2.
Karta is the sole manager of‘Joint Hindu Family Business’.
Answer:

  1. The Karta is the eldest or senior most person in the family business.
  2. Karta has unlimited liability.
  3. He has the entire decision making power and he is not binding on the views of the co-parceners.
  4. Thus, the Karta is the sole manager of Joint Hindu Family business.

Question 3.
The main objective of Co-operative society is to provide services to its members.
Answer:

  1. The Co-operative Society is a voluntary association of persons formed for the purpose of promoting the interest of its members. It is different from all other organizations.
  2. The main objective of a co-operative organization is not to make profit but to give service to its members.
  3. The co-operative society is formed for the welfare of the people.
  4. Co-operative societies are rightly called as service oriented organization. Maximisation of profit is not the aim.
  5. Thus, the main objective of Co-Operative society is to provide services to its members.

Question 4.
A Joint Stock Company can raise huge capital.
Answer:

  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.

Question 5.
The liability of Co-parceners is limited in ‘Joint Hindu Family Business’.
Answer:

  1. In a Joint Hindu Family Business, there are two types of members – Karta and Co-parceners.
  2. The karta has unlimited liability and he is the only decision making authority. The co-parcerns have limited liability and therefore cannot take part in the management of the firm. They can only share the profit but cannot challenge decisions taken by the Karta.
  3. The liability of co-parceners is limited upto the extent of their share in the Joint Hindu Family Business.
  4. The personal property of co-parceners is not used for payment of the liability of the Joint Hindu Family business.
  5. Thus, the liability of Co-parcerners is limited in ‘Joint Hindu Family Business’.

Question 6.
Sole proprietorship is useful for small business.
Answer:

  1. Sole trading concern is owned by only one person.
  2. He uses his own skill and intelligence for his business.
  3. Sole trader brings capital from his own savings. He may borrow from friends and relatives. However, capital collected is limited.
  4. He alone takes decisions of business. Therefore, managerial ability is also limited.
  5. Because of limited capital and limited managerial ability, it is not possible to expand business beyond a certain limit.
  6. Thus, sole proprietorship is useful for small business where limited capital and less managerial ability is needed.

Question 7.
Co-operative society follows democratic principles.
Answer:

  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.

Question 8.
There is separation of ownership and management in Joint Stock Company.
Answer:

  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.

Question 9.
Shares of Private Limited company are not freely transferable.
Answer:

  1. According to the Companies Act, the right to transfer shares is restricted by its articles.
  2. Only a public limited company has right to transfer shares freely.
  3. Thus, shares of Private Limited company are not freely transferable.

Question 10.
All partners are joint owners of Partnership firm.
Answer:

  1. According to the Indian Partnership Act, 1932, all the partners are joint owners of the property of the partnership firm.
  2. No partner can use the property of the firm for his personal interest.
  3. No partner is allowed to take any decision without the consent of all the partners.
  4. No partners can make any secret profit in the business.
  5. Profits and losses are shared among the partners in the profit sharing ratio mentioned in the deed.
  6. Thus all partners are joint owners of Partnership firm.

Question 11.
Active partners take active part in day to day management of partnership firm.
Answer:

  1. Active partner is also called a working partner. He brings in capital and also takes active part in the business of the firm.
  2. He has unlimited liability and shares the profits and losses of the firm. He is also called a managing partner.
  3. Thus, active partners take active part in day to day management of partnership firm.

7. Attempt the following

Question 1.
Explain various types of Co-operative Society.
Answer:
Types of Co-operative Society are as follows:
(i) Consumer Co-operative Societies : A consumer co-operative is a business owned by its customers. They purchase in large quantities from wholesalers and supply in small quantities to customers. Goods are provided to buyers at reasonable prices and also provide services to them. Members get a share in the profit. The consumer society is formed to eliminate middlemen from distribution process e.g.-Apana Bazar, Sahakari Bhandar.

(ii) Credit Co-operative Societies : Members pool their savings together with the aim of obtaining loans from their pooled resources for productive purposes and non-productive purposes. They may be established in rural areas by agriculturist or artisans called as a Rural Credit Society. They may be established by salary earners or industrial areas called as Urban Banks, Salary Earners Society or Workers Society.

(iii) Producer’s Co-operatives : Producer’s Co-operatives are voluntary associations of small producers and artisans who come together to face competition and increase production. These societies are of two types:
(a) Industrial Service Co-operatives : This society supply raw materials, tools and machinery to the members. The producers work independently and sell their industrial output to the co-operative society. The output of members is marketed by the society.

(b) Manufacturing Co-operatives : In this type, producer members are treated as employees of the society and are paid wages for their work. The society provides raw material and equipment to every member. The members produce goods at a common place or in their houses. The society sells the output in the market and its profits is distributed among the members.

(iv) Marketing Co-operatives Societies : These co-operatives find better markets for members produce. They also provide credit and other inputs to increase members production levels. They perform marketing functions such as standardising, grading, branding, packing, advertising etc. The proceeds are then distributed among members depending on the quantities sold.

(v) Co-operative Farming Societies: Farmers voluntarily come together and pool their land. The agricultural operations are carried out jointly. They make use of scientific method of cultivation.

(vi) Housing Co-operative Societies : Housing Co-operatives are owned by residents. The society purchases land and develops it. Houses are constructed for residential purpose on ownership basis. They aim at establishing houses at fair and reasonable rents to members. For construction purposes loans are made available from Governmental or Non-Governmental sources. The society also looks after the maintenance of its buildings.

Maharashtra Board OCM 11th Commerce Solutions Chapter 4 Forms of Business Organisation – I

Question 2.
Explain the features of Joint Stock Company.
Answer:
The features of Joint Stock Company are as follows:
(i) Common Seal : A company being an artificial person cannot sign on its own. The law requires every company to have a seal and have its name engraved on it. Common seal is a symbol of company’s incorporate existence. As common seal is the signature of the company, it has to be affixed on all important documents of the company. When the seal is used it has to be witnessed by two Directors of the Company. The common seal is under the custody of Company Secretary.

(ii) Registration : The registration of Joint Stock Company is compulsory. All the companies have to be registered under Indian Companies Act, 2013. A private limited company can start its business immediately after getting ‘Incorporation Certificate’ while public limited company has to obtain. “Certificate of Commencement of Business” before it starts business.

(iii) Artificial Legal Person : A company is an artificial person created by law. It has an independent legal status. It has a separate name. It can enter into contracts, buy and sell property in its name. The company is distinct from its members.

(iv) Membership : A company is an association of persons. A private limited company must have atleast two persons and a public limited company must have atleast seven persons. The maximum limit of members for private company is 200. A public company can have unlimited members.

(v) Perpetual Succession : A Joint Stock company enjoys a long and stable life. There is continuity in existence, which means perpetual existence. Life of the company is not affected by life of the shareholders. If a shareholder dies, becomes insolvent or insane, the company will not be closed down. “Members may come and members may go but a company goes on forever”.

(vi) Separation of Ownership and Management: Persons investing in the shares of the company are called as shareholders. They are the owners of the company. They receive a share in the profits of the company called “dividend”. The large number of shareholders cannot manage business. They elect representatives who are collectively called as Board of Directors. They manage business of the Company.

(vii) Registered Office : Registered office of the company is a place where all the important documents of the company are kept e.g., Register of Members, Annual Returns, Minute Books, etc. All correspondence work of the company is done through registered office. The address of the registered office has to be mentioned in the domicile clause of the company.

(viii) Transferability of Shares : Shareholders are the owners of the company. Shares of a public limited company are freely transferable. There is a high degree of liquidity involved in buying shares of the company. Members can buy or sell shares as needed. However, there are restrictions on transferability of shares of a private company.

(ix) Voluntary Association : Any person can purchase shares and become a member of the company. The company is a voluntary association. No difference is made on the basis of religion, caste, creed, etc.

(x) Limited Liability : The liability of shareholders is limited. It depends upon the unpaid amount of shares held by them. Shareholders cannot be held personally liable for the debts of the company.

(xi) Separate Legal Status : The company is created by law. It has a separate legal entity. A company acts independently. The company can take legal action against anybody in its individual capacity.

Question 3.
Describe the features of Co-operative Society.
Answer:
(i) Limited Liability : The liability of members is limited. It depends upon the value of shares purchased by members. Therefore, their personal property is not used for payment of society’s debt.

(ii) Management : Elected representatives of members form the Managing Committee. The Managing Committee works according to bye-laws. Collective decisions are taken after conducting meetings. The organisation is managed on democratic principles.

(iii) Service Motive : The main motive of co-operative organisation is to give service to the people. It is not profit oriented. Utmost importance is given to the welfare of the people. In that sense, a co-operative society differs from other forms of organisation.

(iv) Surplus Profit: Profits are made in the course of business after payment of dividend to shareholders. A percentage of profit is always used for welfare of the people. Bonus is given to employees and as bonus on purchase made by members.

(v) Separate Legal Status : A Co-operative Society is formed according to Co-operative Societies Act, 1912, which gives it independent legal status. It is distinct from its members. Therefore it can enter into contract purchase property, etc. in its name.

(vi) Equal Voting Rights : All the members in a Co-operative Societies have equal voting rights irrespective of number of shares held by them.

(vii) Number of Members : Minimum 10 members are required for the formation of Co-operative Society. There is no limit on maximum number of members.

(viii) Democratic Principle : Democracy is followed in the working of co-operatives. Equality of voting rights is the main principle of the organisation. The principle of ‘One member One vote’ is followed. All members are equal in society.

(ix) Voluntary Association and Open Membership : Co-operative organisation is a voluntary association of individuals. Membership is voluntary. Any person can become a member of the organisation. No difference is made on the basis of language, religion, caste, etc. There is open membership. A person can become a member on his own free will and terminate membership whenever he wants.

(x) Registration : Registration of a Co-operative organisation is compulsory under Co-operative Society’s Act, 1912. Registration is done according to the Act of every state. In Maharashtra, Societies are registered under Maharashtra State Co-operative Societies Act, 1960.

(xi) State Support : Co-operatives receive support from the government. They are under the control and supervision of the State. All of them are registered under the Co-operative Societies Act, 1912. They get a corporate status. They get concessions from government in purchase of land, payment of tax etc. They get legal and financial assistance also.

8. Answer the following

Question 1.
Explain the features of Sole Trading Concern.
Answer:
A sole trading concern is one of the oldest and simplest form of organisation. An individual owns the entire business. The individual is the owner, controller and manager of the firm. Such an individual is called a Sole Trader or Sole Proprietor. This type of business is a one-man show.
(1) According to Prof. J. Hanse, “Sometimes known as one man business, it is a type of business unit where one person is solely responsible for providing the capital, for bearing the risk of the enterprise and for the risk of ownership”.

(2) According to Prof. James Lundy : “The sole proprietorship is an informal type of business owned by one person.” The features of Sole Trading Concern are as follows:
(i) Suitable for some Special Business : Sole trading concern is suitable for business where personal attention and individual skill is needed e.g., Beauty parlour, groceries, fashion designing, sweet shops, tailoring, restaurants etc.

(ii) Unlimited Liability : Liability of the sole trader is unlimited. In case business assets are not sufficient to meet business expenses, private property of the sole trader will be used. There is no difference made between private property and business property of sole trader.

(iii) No Sharing of Profits and Risks : A sole trader enjoys all the profits of business. As he is the single owner of business he assumes full responsibility in business. He alone bears all the losses or risks involved in business.

(iv) Business Secrecy : Maximum business secrecy can be maintained in a sole trading concern. A sole trader is responsible only to himself. He need not discuss any matter of business with outsiders. Moreover, there is no legal compulsion for sole trader to publish books of accounts of business.

(v) Local Market Operations : A sole trader has limited capital and limited managerial skills, which forces him to operates in local are market only.

(vi) Individual Ownership : A sole trader is the single owner of business. He owns all the property and assets of the concern. He brings in the required capital for business. A sole trading concern is a ‘One man show”.

(vii) No separate legal status : Sole trader and his business are considered one and the same in the eyes of . law. Thus, it does not enjoy separate legal status.

(viii) Direct Contacts with Customers and Employees : A sole trader directly deals with customers and employees. A sole trader can pay personal attention to his customers. This helps him to maintain good relations with his customers. He can serve customers according to their likes and dislikes. As there are less number of employees, he can build good relations with them. He can listen to their grievances and try to solve them.

(ix) Self-employment : Such business form is best suitable for self-employment. Instead of being remaining unemployed one can start such business as it requires low capital and has less legal formalities.

(x) Freedom in Selection of Business : A sole trader has freedom to select any type of business. Business selected must be allowed legally. A sole trader can use any method of maintaining books of accounts.

(xi) Minimum Government Regulations : Sole trading concern need not follow any special Act. There are not much legal formalities needed for forming and closing a sole trading concern. Only the general law of the country has to be followed.

Question 2.
Explain different types of Partnership Firms.
Answer:
Maharashtra Board OCM 11th Commerce Solutions Chapter 4 Forms of Business Organisation – I 1
(i) General Partnership : These partnership can be formed under the Indian Partnership Act, 1932, where the liability of all partners are unlimited, joint and several.
General Partnership can be divided into three Kinds:
(a) Partnership at will: Such partnership are formed and continued as per the will of the partners. They are formed for an indefinite period. Any partner can terminate the partnership by giving a notice to the firm. Such firms exists so long as there is mutual trust and co-operation among the partners.

(b) Partnership for a particular period : Such partnerships are formed for a particular period of time. On the completion of the duration, the partnership firm automatically dissolves irrespective of the venture being complete.

(c) Partnership for a venture or particular partnership : Such partnerships are formed for a particular venture or job. It comes to an end on the completion of the venture. For e.g. construction of roads, dams, bridges, buildings, etc.

(ii) Limited Liability Partnership : This kind of partnership is formed under the Limited Liability Partnership Act 2008. There are 2 kinds of partners.

  • Designated Partner : Limited liability partnership is one where there are atleast two partners of which one must be a resident of India.
  • General Partner : In limited liability partnership a apart from the designated partners all other partners have limited liability. They are called general partners.

Question 3.
Explain different types of Partners.
Answer:
The different types of partners are:
(i) Active or Working Partners : In practice one or two partners take active part in the management. Such partners are called active or working partners. They contribute capital, shares profits or losses, and has unlimited, joint and several liability. They take an active interest in the day to day working of the firm. These partners are also known as ordinary / general / actual partners.

(ii) Dormant or Sleeping Partners : A dormant or sleeping partner is one who contributes capital to the firm. He does not take any active part in the management of the firm. He shares the profits and losses of the firm like any other partner. He voluntarily surrenders the right of management. However, he is liable for the debts of the firm.

(iii) Nominal Partners : A nominal partner is one who does not contribute any capital to the firm. He lends his name to the firm. He is simply obliging his friends by allowing the firm to use his name as a partner. He may or may not be given any share in the profits of the firm. His goodwill is used to attract business. However, he is liable for the debts of the firm.

(iv) Minor as Partner : According to the Indian Contract Act 1872, a person below 18 years is called a minor. But according to the Indian Partnership Act 1932, a minor can be admitted for the benefit of the firm with the consent of all other partners. He has a right to inspect the books of accounts. Minor partner has limited liability and is not liable for losses. He has the option to continue as a full-fledged partner or discontinue as a partner on attaining the age of majority. If he wishes to discontinue, he must give a public notice within 6 months from the age of majority.

(v) Partner in Profits only : A partner may clearly state that he will have a share only in the profits of the firm and that he will not share losses. Such a partner is known as “Partner in Profits Only”. He has no rights of management. He may not take active participation in the management of the firm.

(vi) Partner with Limited Liability : A limited partner has limited liability. A partner whose liability depends upon the extent of investment is called a limited partner. He has no right to take part in the day to day work. But such a partnership must have at least one partner having unlimited liability.

(vii) Secret Partner : A person is a partner of the firm and not known to general public is a secret partner. Secret partners have all the features like other partners. He brings capital to the firm and also gets a share in profit. He has unlimited liability. He can take part in the working of the business.

(viii) Sub-Partner : A partner when agrees to share his own profit derived from the firm with third person, it is known as sub-partner. A sub-partner cannot call himself as a partner in the firm.

(ix) Quasi Partner : A retired partner leaving his capital with the firm is called as Quasi Partner. He does not participate in the working of the firm, but share profit of the firm. He is also liable for the debts of the firm.

Maharashtra Board OCM 11th Commerce Solutions Chapter 4 Forms of Business Organisation – I

Question 4.
Explain the five features of Joint Stock Company.
Answer:
The features of Joint Stock Company are as follows:
(i) Common Seal : A company being an artificial person cannot sign on its own. The law requires every company to have a seal and have its name engraved on it. Common seal is a symbol of company’s incorporate existence. As common seal is the signature of the company, it has to be affixed on all important documents of the company. When the seal is used it has to be witnessed by two Directors of the Company. The common seal is under the custody of Company Secretary.

(ii) Artificial Person : A company is an artificial person created by law. It has an independent legal status. It has a separate name. It can enter into contracts, buy and sell property in its name. The company is distinct from its members.

(iii) Registration: The Registration of Joint Stock Company is compulsory. All companies have to be registered under Indian Companies Act, 2013.

(iv) Membership : A company is an association of persons. A private limited company must have atleast two persons and a public limited company must have atleast seven persons. The maximum limit of members for private company is 200. A public company can have unlimited members.

(v) O wnership and Management: Persons investing in the shares of the company are called as shareholders. They are the owners of the company. They receive a share in the profits of the company called “dividend”. The large number of shareholders cannot manage business. They elect representatives who are collectively called as Board of Directors. They manage business of the Company.

(vi) Limited Liability : The liability of shareholders is limited. It depends upon the unpaid amount of shares held by them. Shareholders cannot be held personally liable for the debts of the company.

Question 5.
Explain the merits of a Co-operative Society.
Answer:
The merits of a Co-operative Society are as follow:
(i) E asy Formation: It is easy to form a Co-operative organisation. Minimum ten members are needed to form the organisation. It does not involve much legal formalities. It is compulsory to register the organisation. However, the procedure for registration is simple and the fees are nominal.

(ii) Tax Concession : Co-operatives always get support of the government. As they play an important role in economic and social development, government gives them concessions in payment of tax.

(iii) Open Membership : Membership of a Co-operative organisation is open to all. A person can become a member by purchasing shares. No difference is made on the basis of language, religion, caste, etc. A person can become a member whenever he wants and terminate membership at his own will. Membership is voluntary.

(iv) Stability : A Co-operative organisation enjoys a long and stable life. The life of the organisation is distinct from the life of its members. If any member dies, becomes insolvent or insane, business is not closed.

(v) Self Financing and Charity : After providing 15% dividend to members, surplus amount is used for self-financing by the Co-operative Societies. Some amount of leftover profit is used for charity, social activities and for the growth of the co-operative society.

(vi) Less O perating Expenses: Cost of operation is low as salary is not paid to members who manage business. Members of Co-operative organisations work on honorary basis. They are not given any remuneration for their services. There are no expenses on advertising and publicity. This helps to increase profit.

(vii) Limited Liability : The liability of members is limited. It depends upon the value of shares purchased by members. Therefore, people are interested in investing in a Co-operative organisation.

(viii) Democratic Management: Democracy is followed in the management of co-operative organisation. All members are equal. The principle of “One member One vote” is followed. Members elect representatives who form the managing committee. They work according to bye-laws. The managing committee looks after day to day administration. Decisions are taken collectively in meetings.

(ix) Supply of Goods at Cheaper Rate : Goods are sold at lesser price through a Co-operative store. This is because the organisation is service – oriented. The store does not make use of services of middlemen and there are no expenses on advertising. So goods are sold at cheap rates.

Question 6.
Explain the demerits of Partnership firm.
Answer:
The demerits of Partnership firm are as follows:
(i) Non-transferability of Interest: In a partnership firm no one partner can transfer his share of interest to another outsider without the consent of all the partners.

(ii) Limited Capital: There is a limitation in raising additional capital for business. The business resources are limited to personal funds of the partners. Borrowing capacity of partners is limited. The maximum number of partners is fifty only. So financial capacity is less.

(iii) Absence of Legal Status : The Indian Partnership Act, 1932 does not give a legal status to a partnership firm. There is no independent legal status. The firm and its partners are one and the same.

(iv) Problem of Continuity : The partnership firm is not a separate legal entity. The firm is dependent oh mutual trust between partners. If a partner dies, becomes insolvent or insane, the firm has to be dissolved compulsorily whether the partners wish or not.

(v) Risk of Implied Authority : A partner works in two capacities. He has a dual role – Principal and Agent. He acts as an agent of the business. He can enter into contract with third party. However, a wrong decision can result in heavy losses, which has to be borne by all partners.

(vi) Limitations on Number of Partners : No partnership can go beyond maximum number prescribed (i.e. 50 members) by Indian Partnership Act. This restriction effects the raising of capital for further expansion.

(vii) Disputes : It is difficult to maintain harmony among partners. They may have different opinions and may not agree on certain matters. Partners may have conflicts if some partners work for self interest. This reduces team spirit and may finally lead to dissolution of the firm.

(viii) Difficulty in Admission of Partner : As consent of all partners is required to take any decision in the partnership firm, it becomes difficult to admit a new partner. This is a disadvantage to the firm as it cannot bring in new talent if the other partners are not agreeing to it.

(ix) Unlimited Liability : The liability of partners is unlimited. There is no difference between business property and personal property of partners. If business assets are not enough to meet business expenses, personal property can be used.

(x) Problem of Secrecy : Partnership firms lack complete business secrecy as some secrets may be disclosed by some partner to the competitor for personal benefit.

Question 7.
Explain the merits of Joint Stock Company.
Answer:
The merits of Joint Stock Company are as follows:
(i) Transferability of Shares : Shares of a public company can be transferred easily and freely. There is a high degree of liquidity in shares. Permission of directors or members need not be taken for buying and selling shares. This helps to attract investors to public company.

(ii) Relief in Taxation : The tax burden in the company is less. Provisions of Income Tax Act says that companies have to pay tax at flat rate. This is less than taxes paid by individuals earning very high income. If company is started in backward areas, the company gets relief in the form of tax holding.

(iii) More Scope for Expansion : The capital raising capacity of the company is high. The company has a lot of funds at its disposal. A part of the profit is also ploughed back for business. This enables growth and expansion of business.

(iv) Public Confidence : Joint Stock Company has to publish books of accounts. Which is audited by CA. Annual reports of the company have to be published. The activities of the Company are regulated by the provision of Companies Act, 2013. Therefore, the company gets public support.

(v) Limited Liability : The liability of shareholders is limited. It is to the extent of unpaid value of shares. Shareholders cannot be liable for the debts of the company. Features of limited liability attract more investors to business.

(vi) Expert Services : Joint Stock Company an appoint experts for managing their huge business operations. They appoint experts like Legal advisors, management experts, auditors, consultants, etc.

(vii) Democratic Management: Management of a company is democratic. Shareholders elect representatives called as Board of Directors. They manage business. Directors are accountable to shareholders. Policy decisions are taken by Directors but have to be approved by shareholders. The shareholders can also remove inefficient Directors.

(viii) Perpetual Succession : Joint Stock Company enjoy long and stable life. Its stability is not affected by death insolvency or retirement, of any of its members.

(ix) Professional Management : Large funds are at the disposal of the companies. Therefore, experts can be appointed in different areas of business. As good salaries can be paid, highly qualified personnel like Cost Accountants, Sales Experts, Market Experts, etc. can be appointed. Even Board of Directors have competent persons who manage business efficiently.

(x) Large Amount of Capital: A company can collect large amount of capital. There is no limit on maximum number of members. Due to features of limited liability, transferability of shares and liquidity, many investors are attracted to become shareholders of the company. Loans are also available to Joint Stock Companies.

Question 8.
Explain the features of partnership firm.
Answer:
The features of partnership firm are as follows:
(i) Lawful Business : Business undertaken by partnership should be lawful. It cannot undertake business forbidden by state. The definition of partnership also does not permit any association like club or charitable institution. Illegal business like smuggling or gambling is not allowed.

(ii) Agreement : Partnership is a result of agreement between partners. There could be a written or oral agreement between partners. A written agreement is preferred so that it can be used as a proof in the court of law if needed.

(iii) Number of Partners : Minimum two members are needed to start a partnership firm. The maximum number of members is 50.

(iv) Dissolution : A Partnership Firm can be dissolved through agreement between partners. If a partner wants, he can dissolve the firm by giving 14 days notice to the firm. The firm can be dissolved if a partner dies, becomes insolvent or insane.

(v) Sharing of Profits and Losses : The purpose of partnership is to earn profit. Its object cannot be a charitable one. Partners have to share profits and losses according to the ratio given in the agreement. If the agreement is silent about the proportion then profit and loss sharing will be equal.

(vi) Termination of Partner : A partner may resign by giving proper notice in writing to the other partners. A partner can also be removed if he has been found doing any fraudulent activities.

(vii) Joint Ownership : Each partner is the joint owner of the property of the firm. All partners are equal owners of business property. No partner can use property for personal use.

(viii) Registration : It is not compulsory as per Indian Partnership Act, 1932. However, in the State of Maharashtra, it has been made compulsory to get register with ‘Registrar of Firms’ of the state.

(ix) Joint Management: All partners have equal rights in managing the firm. Some partners take interest in management of the firm and others voluntarily surrender their management rights. However, all partners are jointly responsible for the management of the firm.

(x) Unlimited Liability : The liability of partners is unlimited joint and several. If assets of business is not sufficient to pay liabilities, personal property of partners can be used. If any one of the partners is declared insolvent, his liability will be borne by the solvent partners.

(xi) Principal and Agent : Each partner works in two capacities – Principal and Agent. A partner acts as principal when within the firm and acts as an agent while dealing with outsider. The partners play a dual role.

(xii) Restriction on Transfer of Interest : A partner cannot transfer or sell his interests in the firm to outsider without the prior consent of all other partners in the firm.

Question 9.
Explain the types of co-operative societies.
Answer:
Types of Co-operative Society are as follows:
(i) Consumer Co-operative Societies : A consumer co-operative is a business owned by its customers. They purchase in large quantities from wholesalers and supply in small quantities to customers. Goods are provided to buyers at reasonable prices and also provide services to them. Members get a share in the profit. The consumer society is formed to eliminate middlemen from distribution process e.g.-Apana Bazar, Sahakari Bhandar.

(ii) Credit Co-operative Societies : Members pool their savings together with the aim of obtaining loans from their pooled resources for productive purposes and non-productive purposes. They may be established in rural areas by agriculturist or artisans called as a Rural Credit Society. They may be established by salary earners or industrial areas called as Urban Banks, Salary Earners Society or Workers Society.

(iii) Producer’s Co-operatives : Producer’s Co-operatives are voluntary associations of small producers and artisans who come together to face competition and increase production. These societies are of two types:
(a) Industrial Service Co-operatives : This society supply raw materials, tools and machinery to the members. The producers work independently and sell their industrial output to the co-operative society. The output of members is marketed by the society.

(b) Manufacturing Co-operatives : In this type, producer members are treated as employees of the society and are paid wages for their work. The society provides raw material and equipment to every member. The members produce goods at a common place or in their houses. The society sells the output in the market and its profits is distributed among the members.

(iv) Marketing Co-operatives Societies : These co-operatives find better markets for members produce. They also provide credit and other inputs to increase members production levels. They perform marketing functions such as standardising, grading, branding, packing, advertising etc. The proceeds are then distributed among members depending on the quantities sold.

(v) Co-operative Farming Societies: Farmers voluntarily come together and pool their land. The agricultural operations are carried out jointly. They make use of scientific method of cultivation.

(vi) Housing Co-operative Societies : Housing Co-operatives are owned by residents. The society purchases land and develops it. Houses are constructed for residential purpose on ownership basis. They aim at establishing houses at fair and reasonable rents to members. For construction purposes loans are made available from Governmental or Non-Governmental sources. The society also looks after the maintenance of its buildings.

Maharashtra Board OCM 11th Commerce Solutions Chapter 4 Forms of Business Organisation – I

Question 10.
Explain the demerits of Joint Stock Company.
Answer:
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.

5. High Cost of Management : The management of joint stock company form of organization is costly. Services of experts like share brokers, underwriters, solicitors, bankers is needed which is costly. Highly qualified staff is needed. They are paid good salaries. Dissolution of the firm is also costly.

6. Reckless Speculation: Directors look after management of the company. They have full information about the progress of the company. They use these details for speculation in shares. This results in fluctuations in share prices. This affects public confidence.

7. No Personal Contact : There are large number of employees in the organization. There is no personal contact of owners and managers with employees. Lack of appreciation demotivates employees. Similarly, managers and directors are not able to maintain personal contacts with their customers. Thus, customers likes and dislikes are ignored.

8. No Direct Effort Reward Relationship : Joint Stock Company is owned by shareholders and managed – by Board of Directors. Board of Directors are paid for managing and profit is shared by shareholders. There is no direct relation between efforts and rewards. Directors may not take a lot of interest in the working of the company.

Maharashtra Board OCM 11th Commerce Solutions Chapter 3 Small Scale Industry and Business

Balbharti Maharashtra State Board Organisation of Commerce and Management 11th Textbook Solutions Chapter 3 Small Scale Industry and Business Textbook Exercise Questions and Answers.

Maharashtra State Board 11th Organisation of Commerce and Management Solutions Chapter 3 Small Scale Industry and Business

1. (A) Select the Correct option and rewrite the sentence

Question 1.
The problem of ……………….. is becoming more serious in India.
(a) employment
(b) unemployment
(c) pollution
Answer:
(b) unemployment

Question 2.
India is ………………… abundant country.
(a) labour
(b) money
(c) material
Answer:
(a) labour

Question 3.
…………….. cost of power acquisition, frequent power cuts, irregular supply of power affect the productivity of SSI.
(a) Higher
(b) Lower
(c) Average
Answer:
(a) Higher

Maharashtra Board OCM 11th Commerce Solutions Chapter 3 Small Scale Industry and Business

Question 4.
Before setting up business, it is essential to study prevailing ………………. environment.
(a) business
(b) natural
(c) political
Answer:
(a) business

Question 5.
Small Scale Business are ………………… intensive.
(a) money
(b) power
(c) labour
Answer:
(c) labour

Question 6.
Occurring obscured idea in mind of entrepreneur is ……………….. stage of establishing business.
(a) first
(b) second
(c) third
Answer:
(a) first

Question 7.
Small scale industries contribute nearly ……………….. to the industrial exports of the country.
(a) 40%
(b) 60%
(c) 20%
Answer:
(a) 40%

1. (B) Match the pairs

Group A Group B
(a) Micro Manufacturing Sector (1) Handloom
(b) Traditional Small Scale business (2) Unskilled
(c) Registration (3) Does not exceed Rs. 25 lakhs
(d) Labour (4) 40% of exports of India
(e) Bicycle Parts (5) Does not exceed Rs. 1 lakhs
(6) DIC
(7) Marketing Problem
(8) Modern Small Scale business
(9) Project Appraisal
(10) Cost-efficiency

Answer:

Group A Group B
(a) Micro Manufacturing Sector (3) Does not exceed Rs. 25 lakhs
(b) Traditional Small Scale business (1) Handloom
(c) Registration (6) DIC
(d) Labour (2) Unskilled
(e) Bicycle Parts (8) Modern Small Scale business

1. (C) Give one word/phrase/term

Question 1.
A sector which is back bone of rural India.
Answer:
Small Scale Sector

Question 2.
An industry using power with less than 50 employees.
Answer:
Small Scale Industry

1. (D) State True or False

Question 1.
Small Scale industries should be developed in order to maintain, economic balance in a country.
Answer:
True

Question 2.
Majority Small Scale Industry uses advanced technology.
Answer:
False

Maharashtra Board OCM 11th Commerce Solutions Chapter 3 Small Scale Industry and Business

Question 3.
Small business easily get access to low interest rates.
Answer:
False

Question 4.
Small business cannot survive in the competition.
Answer:
True

1. (E) Find the odd one

Question 1.
Coir, Handicraft, Spare Parts, Hand-loom
Answer:
Spare Parts

Question 2.
Bicycle Parts, Sericulture, Electronic Appliances, Sewing Machine
Answer:
Sericulture

1. (F) Complete the sentences

Question 1.
…………….. industries plays an important role in developing countries.
Answer:
Small Scale

Question 2.
SSI is …………….. largest industry which creates huge employment opportunities.
Answer:
second

Question 3.
SSI enjoys the advantage of ……………… cost of the produce.
Answer:
low

Question 4.
SSI are ……………… intensive.
Answer:
labour

Question 5.
SSI requires ………………….. capital as compared to large scale industries.
Answer:
less

Question 6.
SSI produces consumer goods as well as …………………. components.
Answer:
industrial

1. (G) Select the correct option

(Small Manufacturing Sector, Micro Manufacturing Sector, Micro Services Sector, Medium Manufacturing Sector, Small Services Sector)

Group A Group B
(1) More than Rs 25 lakhs but does not exceed Rs 5 Crores —————-
(2) —————- Does not exceed Rs 25 lakhs
(3) More than Rs 5 crores but does not exceed Rs 10 crores —————
(4) —————- Does not exceed Rs 10 lakhs
(5) More than Rs 10 lakhs but does not exceed Rs 2 crores —————-

Answer:

Group A Group B
(1) More than Rs 25 lakhs but does not exceed Rs 5 Crores Small Manufacturing sector
(2) Micro Manufacturing sector Does not exceed Rs 25 lakhs
(3) More than Rs 5 crores but does not exceed Rs 10 crores Medium Manufacturing sector
(4) Micro Services Sector Does not exceed Rs 10 lakhs
(5) More than Rs 10 lakhs but does not exceed Rs 2 crores Small Services Sector

1. (H) Answer in one sentences

Question 1.
What is SSI?
Answer:
Traditionally the industries in India which are organised on a Small Scale and produces goods with the help of machines, labour and power are considered as Small Scale Industries.

Maharashtra Board OCM 11th Commerce Solutions Chapter 3 Small Scale Industry and Business

Question 2.
State the example of Traditional Small Scale Industry.
Answer:
Hand-loom, Handicraft, Coir, Sericulture, Khadi and Village Industries are the examples of Traditional Small Scale Industries.

Question 3.
Give examples of Modern Small Scale Industry.
Answer:
Bicycle Parts, Sewing Machines, Blades, Razors, Electric Appliances, Spare Parts are examples of Modern Small Scale Industries.

1. (I) Correct the underlined word and rewrite the following sentences.

Question 1.
The problem of employment has been becoming more serious in India.
Answer:
The problem of unemployment has been becoming more serious in India.

Question 2.
India is material abundant country.
Answer:
India is labour abundant country.

Question 3.
Small scale Industry uses advanced technology.
Answer:
Small scale Industry uses outdated technology.

Question 4.
SSI begin with large amount of capital.
Answer:
SSI begin with small amount of capital.

Question 5.
Business proposal is the first step in setting up of a small scale business.
Answer:
Decision of Business area is the first step in setting up of a small scale business.

1. (J) Arrange in proper order.

(a) Selection of a place
(b) Selection of a product
(c) Business proposal
(d) Selection of technology
Answer:
(a) Selection of a product
(b) Selection of a place
(c) Selection of technology
(d) Business proposal

2. Explain the following terms/concepts.

Question 1.
Small Scale Industry.
Answer:
Any Industrial Unit is regarded as Small Scale Industry, if the following condition is satisfied.
“Investment in fixed assets like plant and equipment either held on ownership terms or on lease or hire purchase should not be more than Rupees one crore. However, the unit in no way can be owned or controlled or auxiliary for any other industrial unit.”

Maharashtra Board OCM 11th Commerce Solutions Chapter 3 Small Scale Industry and Business

Question 2.
Service Sector.
Answer:
According to MSMED on the basis of investment Micro Service Sector ‘does not exceed Rs 10 lakhs’, Small Service Sector, ‘more than 10 lakhs but does not exceed 2 crores’ and Medium Service Sector ‘more than Rs 2 crores but does not exceed Rs 5 crores’.

Question 3.
Micro Small Scale Business.
Answer:
Micro small scale business is classified as Manufacturing sector and Services Sector. According to MSMED, Micro Manufacturing sector does not exceed Rs 25 lakhs and Micro Services sector does not exceed Rs 10 lakhs.

Question 4.
Traditional Industrial Sector.
Answer:
Small Scale Industries are further classified as Traditional Small Scale Industries and Modern Small Scale Industries. Handloom, Handicraft, Coir, Sericulture, Khadi and Village Industries are the examples of traditional SSI Industries.

Question 5.
Modern Industrial Sector.
Answer:
Small Scale Industries are further classified as Traditional Small Scale Industries and Modern Small Scale Industries. Bicycle Parts, Sewing Machines, Blades, Razors, Electric Appliances, Spare Parts are the examples of Modern Small Scale Industries.

3. Study the following case/situation and express your opinion.

1. Mr. Ram wants to start Small Scale business of manufacturing parts of bicycle or machinery.

Question 1.
Identify the first step or stage of setting up his Small Scale business.
Answer:
Ram has to first decide whether the setup will be corporation, proprietorship or partnership. He has to identify his strength and weaknesses which can help him to decide what type of business would be most suitable. He has to study the amount of capital requirement needed to start his business. Once he gets the idea of total capital requirement he can decide what type of business to start.

Question 2.
State the different ways of raising the capital for his business.
Answer:
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.

Maharashtra Board OCM 11th Commerce Solutions Chapter 3 Small Scale Industry and Business

Question 3.
‘Marketing is a necessary step of running a business.’ Comment on it.
Answer:
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.

4. Answer in brief.

Question 1.
State any four points of importance of Small Scale Industry/Business.
Answer:
Importance of Small Scale Industry:
Job Opportunities
Regional Balance
Maximum use of Natural Resources
Reduces Migration

1. Job Opportunities : SSI is second largest industry which creates huge employment opportunities, because it can be operated with minimum amount of capital. SSI can be run with basic and potential skills. This is a boost for a labour surplus country like India.

2. Regional Balance : In India, all regions are not developed due to lack of industrialization. SSI can be setup with minimum amount of capital. Small industries manufactures product using simple technologies, local available resources, material and labour. Thus, they contribute significantly to the balanced development of the country.

3. Maximum use of Natural Resources : Small scale industries are labour intensive. They utilize available natural resources and raw materials from local areas. Such use of local natural resources minimizes the cost of production which result into reasonable price of goods.

4. Reduces Migration : Small Scale industries can create a large number of employment in rural area. SSI is also a best example of self-employment. Therefore, migration of people from rural to urban can be reduced or minimized.

Question 2.
Write any four advantages of Small Scale Industry.
Answer:
Advantages of Small Scale Industries:
1. Large Employment
2. Less Capital Requirement
3. Contribution to Export
4. Opportunities for Entrepreneurship

1. Large Employment: Small Scale Industries has huge potential to create employment opportunities. They are labour intensive and use more labour than other factors of production. Their gestation period is also low and can provide employment opportunities to large number of people.

2. Less Capital Requirement : SSI requires less capital as compared to large scale industries. SSI can be started by small entrepreneurs with limited capital resources.

3. Contribution to Export : Nearly 40% of the industrial exports are contributed by SSI. Product such as hosiery, knitwear, gems and jewellery, handicraft, coir products, woolen garments, processed food, chemical and allied products and a large number of engineering goods contribute substantially to India’s exports. Products produced by SSI are used in the manufacturing of products by large scale industries which are exported. It contributes directly and indirectly to exports and helps to earn valuable foreign exchange.

4. Opportunities for Entrepreneurship : Small Scale Industries provide opportunities for entrepreneurs with limited capital as it requires less capital and lower investment in technology and machines as compared to large scale enterprises. Therefore, small entrepreneurs can start small scale industries easily.

Question 3.
State any four challenges before Small Scale Industries.
Answer:
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.

5. Justify the following statements.

Question 1.
Generally Small Scale Industries are sick.
Answer:

  1. There are many problems faced by Small Scale Industries. These problems may be internal problems or external problems.
  2. Internal Problems are like unskilled labour or untrained labour, lack of managerial skills and marketing skills, lack of modernisation, etc.
  3. External problems like shortage of working capital, inadequate loans, delayed payments, shortage of raw material, etc.
  4. 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 year.
  5. Thus, mainly due to financial problem, industrial units are unable to sustain themselves and are called as sick units.

Maharashtra Board OCM 11th Commerce Solutions Chapter 3 Small Scale Industry and Business

Question 2.
Small Scale Industry require less amount of capital.
Answer:

  1. The production of Small Scale Industries is less.
  2. General unskilled labours are employed.
  3. As production is less raw material requirement is also less.
  4. In a place like India, where capital formation is low, small business is suitable.
  5. Due to small in size, such form of business can easily adapt to changing atmosphere. This promotes flexibility. It can easily change their working style without much loss as compared to large businesses.
  6. Thus, SSI requires less amount of capital.

Question 3.
Small Scale Industries have problems.
Answer:
Small scale industries have to face many problems:

  1. Lack of Adequate Finance : Due to small scale of production and sale, Banks and Financial Institutions are afraid to give loans.
  2. Problem of Raw material : Due to inadequate finance they cannot purchase raw material at a time. Thus, the cost of raw material increases.
  3. Labour Problem : Due to inadequate finance, they cannot employ skilled labour which affects the production.
  4. Marketing Problem: The goods manufactured if not marketed properly can be risky as it will affect the sales,
  5. Problem of Transport: Transportation cost increases the cost of the product which hampers the sale as large scale industries cost may be less.
  6. Sickness : Due to financial problem industrial units are unable to sustain themselves and finally turn to sick units.
  7. Thus, Small Scale Industries have problems

6. Attempt the following.

Question 1.
Explain the meaning of Small Scale Industries.
Answer:
Small Scale Industries are those industries where fixed assets i.e. plant and machinery which is owned or hired or taken on lease basis, does not exceed more than one crore.

MSMED has classified Small Scale Industries into Manufacturing sector and Services sector, and further into three categories of business i.e. Micro business, Small business and Medium business.
Subsequently over a period of time, a new definition was introduced by MSMED Act, 2006 (Micro Small and Medium Enterprises Development) is as follows
(A) Manufacturing Enterprises:

  1. A micro enterprise, where the investment in plant and machinery is less than Rs 25 lakh.
  2. A small enterprise, where the investment is more than Rs 25 lakh but less than Rs 5 crore.
  3. A medium enterprise, where the investment in plant and machinery is more than Rs 5 crore but less than Rs 10 crore.

(B) Service Enterprises:

  1. A micro enterprise, where the investment in equipment is less than Rs 10 lakh.
  2. A small enterprise, where the investment in equipment is more than Rs 10 lakh but less than Rs 2 crores.
  3. A mediuiri enterprise where the investment in equipment is more than Rs 2 crore but less than Rs 5 crores.
  4. An industrial unit can be categorised as small business if it fulfills the above capital investment criteria.

Question 2.
State importance of small business.
Answer:
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.

Question 3.
Explain in brief the impact of capital, on Small Scale industries.
Answer:
Major problem faced by small scale industries is insufficient capital, which creates following difficulties with them.
(i) Borrowings of Capital from Landlords and Money Lenders : Nationalised and Co-operative banks are not ready to finance Small Scale Industries without security. Thus, they are forced to borrow from money lenders, where they have to pay very high rate of interest.

(ii) Storage of Raw material: Small Scale Industries are agro based. Raw material is available seasonally. To stock goods they required huge finance. Due to lack of finance, they run industry only in seasons.

(iii) Lack of Skilled Labour : Only unskilled and semi skilled labourer are available. Small Scale Industries cannot afford labour cost of skilled labourer which affect quality and quantity of production and profitability.

(iv) Outdated technology : Due to insufficient capital, production methods used by SSI are old, which results in poor quality and quantity of output.

(v) Weaker Marketing Skill : In todays world marketing plays an important role. Rural area is facing marketing problem due to lack of facilities and knowledge and they are exploited by middlemen too.

Maharashtra Board OCM 11th Commerce Solutions Chapter 3 Small Scale Industry and Business

Question 4.
State the problem faced by Small Scale industries.
OR
Explain in detail the challenges faced by Small Scale Industries.
Answer:
Problems faced by Small Scale Industries:
(i) Outdated Technology : Traditional methods of productions are used due to lack of finance and knowledge about latest technology. This results in poor quality of production with low output.

(ii) Problems of Infrastructure: Problems of infrastructure faced by small business are power cuts, improper transport facility, problem like 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) Underutilization of Capacity : Small Scale Industries cannot utilize optimum resources and capacity due to lack of marketing skills, lack of demand, etc. This lead to increase the cost of product and wastage of resources.

(iv) Lack of Capital: Nationalised and Co-operative banks are not ready to provide finance without securities. Owners of Small Scale Industries don’t have any option other than borrowings funds from landlords and money lenders where they have to pay very high rate of interest.

(v) Problem of Skilled Labourers : Mostly unskilled and semi skilled labourers are available to Small Scale Industries as they cannot afford the wages to highly skilled labourer. This affect quality and quantity of output which result in less price for sales.

Question 5.
Explain the role of Small Scale Industries in employment generation.
Answer:
Small Scale Industries play very important role in generation of employment as follows:

  1. Small Scale Industries are Labour Intensive : There is shortage of capital with small scale industries. They are labour intensive. They use more man power than machines, they creates more opportunities for rural employment.
  2. Employment to Unskilled and Semiskilled Labourer : Small Scale Industries are using old and traditional method of production where they need unskilled and semi-skilled labourer.
  3. Employment of Rural Land Less Labourer : Small Scale Industries are set-up in rural areas. They provide employment to local labourers. They have potential to create opportunities to large scale employment to mass population in villages.
  4. Decrease in Migration of Labourers : Migration means movement of labourers from village to city in search of job. Due to increase in small scale industries in village areas migration of labour is reduced. Labourers are getting good employment at their own villages.

7. Answer the following

Question 1.
Explain the challenges before Small business.
Answer:
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.

Maharashtra Board OCM 11th Commerce Solutions Chapter 3 Small Scale Industry and Business

Question 2.
Write down the benefits or advantages of small business.
Answer:
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.

Question 3.
Explain the process of establishment of Small Scale Industries.
Answer:
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.

Question 4.
Explain the importance of small business.
Answer:
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.

Question 5.
It is clear that the absence of capital and raw material is the main reason for the short term sickness. Explain it.
Answer:
Industrial sickness means the industry which has financial losses over period of time. Short term sickness is a temporary phenomenon.
Followings are the main capital and raw material reasons for short term sickness:
Financial / Capital:
(i) Non availability of Finance from Banks : Nationalised and Co-operative banks are not ready to finance SSI as there is less possibility of recovery of loans. Banks demand securities against loans, which is difficult to arrange for the small businessman.

(ii) Loans from Money lenders : As bank finance is difficult to raise, small businessman borrow capital from money lenders who charged very high rate of interest.

(iii) Shortage of Working Capital : Majority of small scale industries are depend on local source of raw material which is seasonal. They have to buy large quantity of raw materials to be used through out the years which needs large finance.

(iv) Unawareness of various Government Schemes : Due to lack of awareness among the owners of SSI about various Government Scheme for capital marketing, subsidies, etc. suffer capital problems.

Maharashtra Board OCM 11th Commerce Solutions Chapter 3 Small Scale Industry and Business

Raw Material:
(i) Local source of raw material : Majority of small scale industries are depends on local supply of raw materials. Local suppliers of raw materials make artificial scarcity for supply of raw materials which make increase in product cost for the businessman.

(ii) Seasonal supply of raw materials : Small scale industries are using local supply of raw materials. The supply of raw material is seasonal. They don’t have huge capital to stock large quantity of raw materials due to this they have to stop production of goods after season ends and face problem of short term sickness.

(iii) Shortage of raw material : There may be short supply of raw materials due to natural calamities, transport strike, etc. affect the running of small scale industries.

(iv) Poor quality of raw material : There is no grading or standardizing of raw materials supply to small scale industry. This affect product quality and quantity.