Joint Hindu Family Business and Co-operative Society Questions and Answers AP Inter 1st Year Commerce Chapter 4

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AP Inter 1st Year Commerce 4th Lesson Joint Hindu Family Business and Co-operative Society Questions and Answers

Fill in the Blanks

Question 1.
The family members of three successive generations own the business jointly in the ____________ business.
Answer:
Joint Hindu Family

Question 2.
The membership of the JHF is acquired by ____________ in the same family.
Answer:
Birth

Question 3.
The joint Hindu Family business is governed by two laws viz, the ____________
Answer:
Dayabhaga and Mitakshara

Question 4.
____________ Hindu Law prevails in Assam and West Bengal.
Answer:
Dayabhaga

Question 5.
____________ law directs shares in the property gets fluctuate by the number of co-parceners.
Answer:
Mitakshara

Question 6.
The JHF business is governed by the Hindu succession Act of ____________
Answer:
1956

Question 7.
In JHF business ____________ liability is unlimited.
Answer:
Karta

Question 8.
In JHF business, membership is ____________
Answer:
Unlimited

Question 9.
The term ‘co-operation’ is derived from the Latin word’ ____________
Answer:
Co-operari

Question 10.
The term co-operation means working ____________
Answer:
Together

Question 11.
The motto of co-operative society is each for all and all for ____________
Answer:
Each

Question 12.
The minimum number of members required to form a co-operative society is ____________
Answer:
10

Question 13.
In the case of multi-state co-operative societies, the minimum number of members should be ____________ from each state.
Answer:
50

Question 14.
One-man one-vote exists in a ____________ business.
Answer:
Co-operative

Question 15.
In India, co-operative societies are governed by the co-operative societies Act ____________
Answer:
1912

Very Short Answer Questions

Question 1.
Joint Hindu Family.
Answer:
Joint Hindu family : The Joint Hindu Family (JHF) business is a form of business organisation run by the Hindu Undivided Family (HUF), where the family members of three successive generations own the business jointly. The head of the family of the family known as ‘Karta’ manages the business. The other members are called ‘coparceners’. All of them have equal ownership right over the properties of the business.

The members of the JHF is aquired by birth in the same family. There is no restriction for minors to become members of the business. The liability of the karta is unlimited but the liability of co-parceners is limited to the extent of their shares in the business.

Question 2.
Karta.
Answer:
The head of the Joint Hindu Family is known as ‘Karta’. He is the senior most male member of the family. The karta has the authority to manage the business as per his own will. His ways of managing cannot be questioned. The liability of Karta is unlimited.

Question 3.
Co-parcener.
Answer:
The members of the Joint Hindu Family are called co-parcener. Co-parcener is a person who has a share in the common property. The liability of the co-parcener is limited.

Question 4.
Mitakshara.
Answer:
It is one of the schools in Hindu undivided family business. It is applicable to all over India except Assam and West Bengal. According to this rule, only male members of the family get the right of inheritance on property by birth. The right on property come by brith and lost by death. Illegitimate children will have no right of inheritance till the death of the father.

Question 5.
Dayabhaga.
Answer:
This school of Hindu law prevails only in West Bengal, Assam states. According to this law, if the deceased male co-parcener has not left behind a male issue his window (or in her absence, daughter) will become a co-parcener.

Question 6.
Co-operative society.
Answer:
The term co-operation means Working together’. It is a voluntary association of persons who work together to promote their economic interests. The motto of a co-operative society is “Each for all and all for each”.

Question 7.
Registration of the society.
Answer:
Registration of the society : In India, co-operative societies are registered under the co-operative societies Act 1912 or state co-operative societies Act. The multi-state co-operative societies are registered under the multi-state co-operative societies Act 2002. Once registered, the society becomes a separate legal entity and enjoys the following privileges :

1. The society enjoys perpetual sucession.
2. It has its own common seal.
3. It can enter into agreements with others.
4. It can sue others in a court of Law.
5. It can own properties in its name.

Question 8.
Housing co-operative society.
Answer:
It is formed to provide residential accommodation to their members either on ownership basis or at fair rents. Housing co-operative buys and land constructs flats which are allotted to members.

Question 9.
Producers co-operative society.
Answer:
Producers co-operative society : These societies are formed to protect the interest of small producers and artisans by making available items they need for production, like raw- materials, tools, equipments etc.

Question 10.
Credit co-operative society.
These societies are formed to give financial help to the small farmers and other poor sections of society. These societies grant loans at cheaper rates of interest to its needs.

Question 11.
Consumer co-operative society.
Answer:
These societies are formed to protect the interest of small producers and artisans by making available items of their need for production, like raw-material, tools and equipments etc.

Question 12.
Farming co-operative societies.
Answer:
These societies are formed by the small farmers to get the benefit of large scale farming.

Question 13.
Marketing co-operative society.
Answer:
Small producers form together as marketing co-operative societies to solve the marketing problems of their products.

Short Answer Questions

Question 1.
Trace out the features of JHF business.
Answer:
The Joint Hindu Family business runs by Hindu Undivided Family in which the members are the owners jointly. The members are called as “CO-PARCENERS”. The business is managed by the head of the family, known as “KARTHA”.

Definition : A Joint Hindu Family is a family which has the same place of worship, share the same food and shares the same property of the family.

Features / Characteristics :

1. Formation : In JHF business, the minimum number of numbers is 2, having property inheritance. It is not created by an agreement but by operation of law.
2. Legal status : It is jointly owned by the members and governed by Hindu Succession Act, 1956.
3. Membership : Only the members of HUF will get membership rights by brith. Outsiders are not allowed as co-parceners.
4. Profit sharing : All co-parceners will have equal rights in profits of the business.
5. Management : The business is managed by the senior, most member of the family known as ‘Karta’ or ‘Manger’ other members do not have the right to participate in the management.
6. Liability : The personal properties of Karta are utilized to meet the liabilities of the business. The karta will have only unlimited liability, whereas coparceners will have limited liability.

Question 2.
Briefly explain different types of co-operative societies.
Answer:
The primary objective of this movement is “how to protect economically the weaker sections of society”. The co-operative form of organisation is a democratic setup. The philosophy behind co-operative movement is “All for each and each for all”.

Definition : “Co-operation is self-help made effective by organisation”.- Sir. H. Plunkeet

Types of co-operative society :

1. Consumer’s co-operative society : These are started to help lower and middle class people. These societies protect weaker sections of the society.
2. Producer’s co-operative societies : These societies are established for the benefit of small producers.
3. Marketing co-operatives : These societies are association of producers for selling their products at remunerative prices. These societies provide services like grading, warehousing, insurance etc.
4. Housing co-operative societies : These societies provides loan facilities to the weaker sections of the society to construct own houses.
5. Farming co-operative societies : These are the societies formed to reap the benefits of large scale farming on scientific lines. These are called “agricultural credit societies”.
6. Credit co-operative societies : These societies are formed to give financial help to the small farmers and other poor sections of society.

Question 3.
What privileges are enjoyed by registered co-operative society ?
Answer:
A registered co-operative society enjoys several privileges, including the ability to hold property, enter contracts, and democratic management. They also have the right to access government resources, preferential treatment in certain areas, and may be eligible for tax exemptions.

Legal and operational privileges :

1. Seperate legal entity : Registered co-operative societies are treated as a distinct legal entity from their members, allowing them to own property, enter contracts, sue and be sued, and perform other legal actions in their own name.
2. Limited liability : Member’s liability is typically limited to the amount of their shareholdings meaning their personal assets are not at risk if the society increase debts.
3. Perpetual succession : The society continues to exist even if members leave or die, ensuring uninterupted operation.
4. Property ownership and contracts : Registered societies can own property, enter into contracts, and conduct business activities for their purposes.
5. Preferential treatment : They may receive preferential treatment in accessing government resources, programs and services.
6. Tax exemption/deductions : Some co-operative societies may be eligible for tax exemptions or deductions, depending on the specific regulations and their activities.

Question 4.
What are the features of co-operative society ?
Answer:
The term “co-operation” is derived from ‘co-operi’ which means with and together.

Definition : “A society which has its objectives the promotion of the interest of its members in association with co-operative society is “Each for all and all for each”.

Characteristics / Features :

1. Voluntary Association : Members join the co-operative society voluntarily i.e., by their own choice.
2. Open membership : The membership is open to all those having a common economic interest.
3. Number of members : A minimum of 10 members are required to form a co-operative society.
4. State control : The registration is compulsory. Every co-operative society comes under the control of supervision of Government.
5. Capital: The capital of the co-operative society is contributed by its members. It depends on the loan from government.
6. Democratic set up : The management is selected through one-man, one-vote system. Co-operative business stands or falls with democracy.
7. Service motive : Primary objective of co-operative society is to provide service to its members.
8. Return on capital investment : Every member get returns on their investment in the form of dividend.

Question 5.
What are the advantages of Joint Hindu Family business organisation ?
Answer:
Meaning : The Joint Hindu Family business runs by Hindu Undivided Family, in which the members are the owners jointly. The members are call as “Co-parceners”.

Definition : “A Joint Hindu Family is a family which has the same place of worship, shares the same food and share the same property of the family”.

Merits / Advantages :

1. Perpetuity or continuity : It is not dissolved by death or insanity of a co-parcener. The stability of the business increases the reputation in the market.
2. Centralized and efficient management: The business affairs are managed by Kartha only. Hence, unity of command, disciplined management, maintenance of secrecy etc. are possible.
3. No limit to membership : The membership of the co-parcener can be obtained birth in the family. So there is no limit on maximum number.
4. Better credit: When compared to a sole trader, the credit worthiness is better. As kartha is having unlimited liability, the credit facilities are also available.
5. Quick decisions : Kartha can only take decisions. No need to consult any other coparcener. Hence, there will be no delay in taking and implementation of decisions pertaining to decisions.

Question 6.
Explain the advantages of a co-operative form of business organisation.
Answer:
Advantages / Merits :

1. Easy Formation : A co-operative society is formed voluntarily. There are no many legal formalities. It can be formed by 10 persons as minimum. Its registration is easy.
2. Democratic management : Every member can vote irrespective of shares held by them. Every member ha an equal voice in the management. In this way the management is done in a democratic way.
3. Limited Liability : The liability of the members is limited.
4. Perpetual Existence : It is not affected by the death or insolvency of any member. It continues its business.
5. Service Motto : It is started not for profits but for service. The members are provided with goods at cheap rates. A feeling of co-operation is created among members.
6. State Patronage : They get financial and non-financial help from the government because they work for the uplift of weaker sections of society.

Question 7.
State the disadvantage of Joint Hindu Family business organisations.
Answer:
Disadvantages / Demerits / Limitations :

1. No direct relation between efforts and rewards : Kartha manages the entire business and the others will share the fruits of the business. There will be no scope for developing leadership qualities, problem solving ability, business handling skills etc. Moreover, idleness may results in laziness.
2. Limited managerial ability : As there is scarcity in man power, no scope for managerial ability.
3. Limited capital and financial resources : The investment is limited to the extent of the property held by the family. In sometimes it may not be adequate for the necessary steps to be taken in business. Financial resources are very limited for Joint Hindu Families.
4. May lead to selfishness of Kartha : Kartha having unlimited powers. And he is not answerable to anybody. He may behave selfishly and manipulate the accounts.
5. Lack of stability : The stability of this form of business is linked with joint family. But the joint family system is breaking very fast now-a-days. So this form of organisation lacks stability.

Question 8.
What are the disadvantages of co-operative business organisation ?
Answer:
Demerits / Disadvantages / Limitations :

1. Limited Resources : The co-operative societies are not able to raise huge amount of capital because the members usually come from a limited area.
2. Inefficiency Management; A co-operative is managed by the members. The members usually lack of experience and managerial capacity. In efficient management may lead to heavy loss.
3. Absence of motivation : The co-operative are non-profit making concerns. Though the society makes huge profits, the members get a very low rate of dividend. So they do not take any active part and interest in the management. Employees also do not have any interest to work hard as they get low salaries.
4. Lack of Co-operation : The success of a society depends upon two factors. Co-operation from members and members familiarity with the principles. But in practice both these conditions are very rarely observed.
5. Lack of secrecy : It is very difficult to maintain business secrets which are very important for the success of a business unit.
6. Political Interference : Generally, members of co-operative society are affiliated to political parties. Political interference is a great problem.

Long Answer Questions

Question 1.
Define the co-operative society and explain its features.
Answer:
Meaning : The term “co-operation” is derived from ‘co-operi’ which means with and together.

Definition : “A society which has its objectives the promotion of the interest of its members in accordance with co-operative principles”. – Indian Co-operative Societies Act, 1912

Features / Characteristics (Principles) :

1. Voluntary Association : Everyone is act liberty to enter or leave the co-operative society as and when he likes. Nobody is compelled to join a co-operative society. Voluntary membership has also been responsible for the success of co-operative movement.
2. Membership is open for all : The management of a co-operative society is opened to all irrespective of religion, caste, creed, colour or political affiliation. The primary aim of co-operatives is to serve its members.
3. State control : The registration is compulsory. Every co-operative society comes under the control and supervision of Government.
4. Capital : As the capital contributed by the members is very limited the society often depends on the loan from government along with assistance from state/central government and apex institutions.
5.  Democratic Management : The management of a co-operative society is always on democratic lines. All the members of a society select of a body of persons to conduct and control the day-to-day working of the society.
6. Number of members : Ten members are sufficient to form a society. There is no limitation on maximum number. But after formation of society, the maximum number is to be disclosed.
7. Service Motive : The Primary objective of co-operative societies is to provide services to their members.
8. Return on capital investment : Members purchase shares in the society to invest capital. The members get returns on their capital investment in the form of dividend.
9. Distribution of surplus : The co-operative act has a provision to distribute certain percentage of profits as dividends to its members.
10. Registration of the society : jn India, co-operative societies is registered under the co-operative societies Act-1912 under the state co-operative societies act.
11. Equal voting rights : One man, one vote is the co-operative principle.
12. Liability of members : Generally, the members of the society will have limited liability.
13. Separate legal entity : A registered cooperative society will enjoy the perpetual succession.
14. Privileges and exemptions : A registered co-operative society enjoys certain privileges, exceptions and concessions.
15. Perpetual Succession : The society enjoys perpetual succession by having common seal.

Question 2.
What is Joint Hindu Family business? Discuss its main features.
Answer:
The Joint Hindu Family business runs by Hindu Undivided Family in which the members are the owners jointly The members are called as “CO-PARCENERS”. The business is managed by the head of the family, known as “KARTHA”.

Definition : A Joint Hindu Family is a family which has the same place of worship, share the same food and shares the same property of the family.

Features / Characteristics :

1. Formation : In JHF business, the minimum number of numbers is 2, having property inheritance. The contractual relation with respect to the business can be constituted to Hindu Law, but not by agreement.
2. Legal status : It is jointly owned by the members and governed by Hindu Succession Act, 1956.
3. Membership : Only the members of HUF will get membership rights by birth. Outsiders are not allowed as coparceners.
4. Profit sharing : All coparceners will have equal rights in profits of the business.
5. Management : The business is managed by the senior, member of the family called “Kartha”. Accounts are also maintained and managed by Kartha.
6. Liability The personal properties of Kartha are utilized to meet the liabilities of the business. That is kartha will only have unlimited liability, whereas coparceners will have limited liability.
7. Continuity : Death of the coparceners will not affect the existence of the business. Death of Kartha leads to occupy the place of kartha by next eldest person.
8. Dissolution : If the coparceners are dissatisfied, the business can be dissolved by mutual agreement or by partition suit in the court of law.

Question 3.
Define co-operative society and explain the different types of co-operative
societies.
Answer:
Definition : The Indian Co-operative societies Act, 1912, section (4) defines a co-operative society as “a society, which has its objectives for the promotion of economic interests of its members in accordance with co-operative principles”.

Types of Co-operative Societies : According to the needs of the people, we find different types of co-operative societies in India.
Some of the important types are given below :

1. Consumer’s Co-operative Societies : These societies are formed to protect the enterest of consumers by making available consumer goods of high quality at reasonable prices.
2. Producer’s Co-operative Societies : These societies are formed to protect the interest of small producers and artisans by making available items they need for production, like raw-materials, tools, equipments etc.
3. Marketing co-operative Societies : Small producers form together as marketing co-operative societies to solve the marketing problem of their products.
4. Housing Co-operative Societies : Housing co-operative societies are formed generally in urban areas to provide residential housing facilities to their members.
5. Farming Co-operative Societies : These societies are formed by the small farmers to get the benefit of large-scale farming.
6. Credit Co-operative Societies : These societies are started by persons who need credit. They accept deposits from the members and grant them loans at a reasonable rate of Interest.

Question 4.
A co-operative form of organisation is a method of “self-help”. Discuss.
Answer:
The co-operative movement started in England by Robert – Owen in the year 1844.

The “co-operation” is derived from ‘co-operi’ which means with and together.

Definition : “A society which has its objectives the promotion of the interest of its members in accordance with co-operative principles. – Indian Co-operative Society Act, 1912

Features :

1. Voluntary Association : Members of the society can be joined at their will, i.e., their own choice.
2. Open membership : Any one can become its member irrespective of caste, creed, religion, sex, etc.
3. Number of members : Atleast 10 members are required to form a co-operative society.
4. Democratic set up : Every member will have equal voting right, irrespective of shares and the management works on the democratic lines of management.
5. Service motive : The main objective of co-operative society is to render service to its
   members.
6. Distribution of surplus : Profits of the society are distributed in the form of dividend to its members. Some statutory reserve will also be kept a side for the welfare of the society.

Hence, from the above definitions, co-operative society is a voluntary association of persons who work together to promote their economic interests. It works on the principle of self-help and mutual help. It is reflected in profit distribution, decision making, entering as a member and the service motto of “each for all and all for each”.

Question 5.
State the advantages and disadvantages of Joint Hindu Family business organisation.
Answer:
The Joint Hindu Family business runs by Hindu Undivided Family, in which the members are the owners jointly. The members are call as “Coparceners”. The business is managed by the head of the family, known as “Kartha”.

Definition : “A Joint Hindu Family is a family which has the same place of worship, shares the same food and share the same property of the family”.

Merits / Advantages :

1. Perpetuity or continuity : It is not dissolved by death or insanity of a coparcener. The stability of the business increases the reputation in the market.
2.  Centralized and efficient management: The business affairs are managed by Kartha only.
3. No limit to membership : The membership of the coparcener can be obtained by birth in the family. So there is no limit on maximum number.
4. Better credit: When compared to a sale trader, the credit worthiness is better. As kartha is having unlimited liability, the credit facilities are also available.
5. Quick decisions : Kartha can only take decisions. No need to consult any other coparcener.

Disadvantages / Demerits / Limitations :

1. No direct relation between efforts and rewards : Kartha manages the entire business and the others will share the fruits of the business. There will be no scope for developing leadership qualities, dynamism, problem solving ability, business handling skills etc. Moreover, idleness may results in laziness.
2. Limited managerial ability : As there is scarcity in man power, no scope for managerial ability.
3. Limited capital and financial resources : The investment is limited to the extent of the property held by the family. Financial resources are very limited for Joint Hindu Families.
4. May lead to selfishness of Kartha : Kartha having unlimited powers. And he is not answerable to anybody. He may behave selfish and manipulate the accounts.
5. Lack of stability : The stability of this form of business is linked with joint family. So this form organisation lacks stability.

Question 6.
Explain the advantages and disadvantages of a co-operative form of business organization.
Answer:
The term “co-operation” is derived from ‘co-operi’ which means with and together.

The motto of co-operative society is “Each for all and all for each”.

Definition : “A society which has its objectives the promotion of the interest of its members in accordance with co-operative principles”. – Indian Co-operative Societies Act, 1912

Merits / Advantages :

1. Easy Formation : It is formed voluntarily. There are no legal formalities. It can be formed by 10 persons as minimum. Its Registration is easy.
2. Democratic management : It is elected by the members from among themselves. All members are given equal voting rights. So these asociations are run on democratic principles.
3. Limited Liability : The liability of the members is limited.
4. Perpetual Existence : It is not affected by the death or insolvency of any member. It continues its business.
5. Economical operations : The operations carries on by a co-operative society turnout to be quite economical due to elimination of the middlemen.
6. Tax concessions : The law gives preferential treatment to co-operative societies in the form of tax concessions and exceptions.
7. State Patronage : To get financial and non-financial help from the government because they work for the uplift of weaker sections of society.
8. Service Motto : The co-operative societies are started not for profit but for service. The members are provided with goods at cheap rates. A feeling of co-operation is created among members.
9. Cordial relations among members : Co-operatives work on the concept of “All for each and each for all”. As a result, they foster friendship and faternity among members.
10. No speculation in shares : In co-operative society membership is always open to new members. Any person can buy new shares at any time. There is no scope for speculation.
11. Social Utility : This kind of business organisation provides education and training in democracy, self-Government, self-help, mutual help and spirit of service etc. among members.
12. Elimination of middle men : The co-operative societies purchase goods from manufactures / producers directly and supply goods to consumers directly middlemen will be eliminated, which leads to reduction in sales price.
13. Check on the other business organisations : Co-operative societies supply goods at reasonable price even when the other organisations are supplying at more costs. It reduces the exploitation of consumer by other organizations.
14. Provision of employment : Trade and industry have flourished in the co-operative sector with the aids of the state. They create employment avenues in the market. The co¬operative sector and provided jobs to the people.

Demerits / Disadvantages / Limitations :

1. Limited Resources : The co-operative societies are not able to raise huge amount of capital because the members usually come from a limited area.
2. Inefficiency Management : A co-operative society is managed by the members. The members usually lack of experience and managerial capacity. Inefficient management may lead to heavy loss.
3. Absence of motivation : The co-operatives are non-profit making concerns. Employees also do not have any interest to work hard as they get low salaries.
4. Lack of Co-operation : Co-operation from members and members familiarity with the principles. But in practice both these conditions are very rarely observed.
5. Lack of secrecy : It is very difficult to maintain business secrets which are very important for the success of a business unit.
6. Political Interference : Generally, members of co-operative society are affiliated to political parties. Political interference is a great problem.
7. No credit : Credit is not allowed in co-operative society. Generally people buy their requirements from other shops on credit. It is loss to the society.
8. Lack of public confidence : The co-operative societies have achieved only limited success in many countries. That has ended, the confidence of the public.
9. Excessive Government Interference : Excessive state participation and regulation kills the voluntary, character of the co-operative organisation.
10. Limited scope : They have limited capital-raising power. They cannot undertake large- scale operations.

Check Your Knowledge

I. Fill in the blanks for the following questions :

Question 1.
In a Joint Hindu Family, who is the head of the family and manages the property ____________
Answer:
The karta

Question 2.
Besides bank, the other formal major source of cheap credit in rural areas are ____________
Answer:
More than one of the above

Question 3.
A co-operative society is an example for ____________
Answer:
Formal group

Question 4.
Co-operative movement first started in ____________
Answer:
England

Question 5.
Co-operatives in India follow this type of organisation structure ____________
Answer:
Federal structure

Question 6.
At least 10 adults, no maximum limit incase of ____________
Answer:
Co-operative society

Question 7.
Apex society represents ____________
Answer:
state level

Question 8.
The urban credit co-operatives are also known as ____________
Answer:
Urban co-operative banks

Question 9.
Co-operative Banks that fall under the banking regulation Act of 1949 are controlled by ____________
Answer:
RBI

Question 10.
The principle followed in a co-operative society is ____________
Answer:
One-man one-vote

Question 11.
JHF stands for ____________
Answer:
Joint Hindu Family

Question 12.
“CO” means ____________
Answer:
With

Question 13.
Operari means ____________
Answer:
To work

Question 14.
Co-operative society maximum number ____________
Answer:
Unlimited

Question 15.
Karta ____________
Answer:
Head of the family

State whether the statement are True or False.

Question 1.
Housing co-operative societies are formed in Rural areas. (True/False)
Answer:
False

Question 2.
In, India co-operative societies are registered under the co-operative societies Act 1922. (True/False)
Answer:
False

Question 3.
The primary objective of all co-operative societies is to provide services to its members. (True/False)
Answer:
True

Question 4.
Members join the co-operative society voluntarily. (True/False)
Answer:
True

Question 5.
The liability of co-parceners is unlimited. (True/False)
Answer:
False

Question 6.
In JHF business there must be at least two members in the family. (True/False)
Answer:
True

Question 7.
Kartha has all rights on property. (True/False)
Answer:
True

Question 8.
The school of HUF prevails in entire India except in Assam and West Bengal. (True/False)
Answer:
True

Question 9.
HUF stands for Hindu Unity Family. (True/False)
Answer:
False

Question 10.
JHF stands for Joint Hindu Family. (True/False)
Answer:
True

Question 11.
As per the ‘Dayabhaga’ system of British law. (True/False)
Answer:
False

Question 12.
Death of any co-parceners does not affect the continuity of business. (True/False)
Answer:
True

Question 13.
Latin Word “co-operari”. (True/False)
Answer:
True

Question 14.
The motto of co-operative society is “Each for all and all for each. (True/False)
Answer:
False

Question 15.
The capital of the co-operative society is contributed by its members. (True/False)
Answer:
True

Student Activity

State whether the statements are True or False.

Question 1.
The HUF business is managed by Karta. (True/False)
Answer:
True

Question 2.
In Mitakshara the membership is acquired by birth. (True/False)
Answer:
True

Question 3.
The co-parceners have equal ownership rights over the profits of the business. (True/False)
Answer:
True

Question 4.
The minor cannot be a member of the HUF business. (True/False)
Answer:
False

Question 5.
The HUF business is governed by the Hindu succession Act of 1956. (True/False)
Answer:
False

Question 6.
The Karta has a limited liability. (True/False)
Answer:
False

Question 7.
The term co-operation is derived from the French word co-operari. (True/False)
Answer:
False

Question 8.
The co-operative society’s basic principles are self-help and mutual help. (True/False)
Answer:
True

Question 9.
The minimum number of members required to form a co-operative society is 5. (True/False)
Answer:
False

Question 10.
The Registration of a co-operative society is not compulsory. (True/False)
Answer:
True