1ST YEAR
PRINCIPLE OF COMMERCE 
CHAPTER # 4 JOINT STOCK COMPANY

(Short Question And Answer)

Q-1. Define joint stock company?

 Ans.JOINT STOCK COMPANY:

A company which has some features of a corporation and some features of a partnership. The company sells fully transferable stock, but all shareholders have unlimited liability.

OR

 A company may be defined as:

“Any business that issues shares the liability of which is limited.” 

Q-2. Define any four characteristic of joint stock company?

Ans.  Characteristic of joint stock company:

• Name Of The Company: 

The name of the company is followed by the word “ Limited “ which becomes its part. The word limited denotes that the liability of the shareholders of the company is limited to their individual investments.

• Limit to liability:

The liability of the members of a company is restricted to the extent of the unpaid value of the shares held by him. The personal asset of a shareholder cannot be used to pay the company's liabilities.

•  Large capital :

A Joint Stock Company can generate huge amount of money towards capital, because the number of persons contributing towards capital are more in number when compared to Sole Proprietorship or Partnership organization.

• Compulsory Registration: 

The corporation cannot come into existence unless it is registered under the companies Ordinance 1084 in Pakistan. After it is so registered, it is issued a certificate known as commencement certificate. This certificate is not required by the private company.

Q-3.Describe any four advantages of joint stock company?

Ans. Advantage of joint stock company:

•  Limited Liability :

Liability of members of Joint Stock Company is limited to the extent of shares held by them. Hence shareholders assets will not be on stake. This feature attracts large number of investors to invest in the company. 

• Perpetual Existence :

A company is an artificial legal person created by law which has its own independent legal status. Its existence is not affected by the death or insolvency of its members. 

• Large Scale Operation :

The capacity of the corporate organizations to raise the funds is comparatively high which provide capital for large scale operations. Hence opens the scope for expansion. 

• Transferability of Shares :

In a joint stock company it is easy to transfer shares to anyone. But the same is not permitted to private limited company. 

Q-4.Describe any four disadvantage of joint stock company?

Ans. Disadvantages of joint stock company:

• Formation is not easy : 

To act as a legal entity a company has to fulfill various legal and procedural formalities making it a complicated process.

•  Double Taxation : 

This is the biggest disadvantage which the company faces. Firstly, company needs to pay tax for the earned profits and again the shareholders are taxed for the earned income. 

•  Delay in Policy Decisions :

All the legal and procedural formalities which are required to  fulfill before making policies of the company delay the policy decisions. 

•  Lack of secrecy:

A company cannot maintain these secrecy because it submits the various reports to registrar. Sometime it affects the goodwill of the firm badly.

English essay

 ESSAY ON ADVANTAGE AND DISADVANTAGE OF INTERNET

  
Nowadays, the Internet is growing rapidly. Many people open Internet because it assists a lot of benefits to humans. However, many people become victims after accessing the internet. In this essay, I will discuss the advantages and disadvantages of the internet.
  
Advantages:

1. Information on almost every subject imaginable. 
2. Powerful search engines Ability to do research from your home versus research libraries. 
3. Information at various levels of study. Everything from scholarly articles to ones directed at children.
4. Message boards where people can discuss ideas on any topic. Ability to get wide range of opinions.
5. People can find others that have a similar interest in whatever they are interested in.
6. The internet provides the ability of emails. Free mail service to anyone in the country. 
7. Shopping: Along with getting information on the Internet, you can also shop online. There are many online   stores and sites that can be used to look for products as well as buy them using your credit card. You do not need to leave your house and can do all your shopping from the convenience of your home.

Disadvantes:

1. There is a lot of wrong information on the internet. Anyone can post anything, and much of it is garbage.
2. There are predators that hang out on the internet waiting to get unsuspecting people in dangerous situations.
3. Some people are getting addicted to the internet and thus causing problems with their interactions of friends and loved ones.
4. Pornography that can get in the hands of young children too easily.
5. Easy to waste a lot of time on the internet. You can start surfing, and then realize far more time has passed than you realized. Internet and television together of added to the more sedentary lifestyles of people which further exacerbates the obesity problem.
6. Internet has a lot of "cheater" sites. People can buy essays and pass them off as their own far more easily than they used to be able to do.
7. There are a lot of unscrupulous businesses that have sprung up on the internet to take advantage of people. 

1st Year
ECONOMIC NOTES
CHAPTER#1

WHAT IS ECONOMICS ABOUT?

SHORT QUESTION AND ANSWER

Q-1. Define Micro and Macro Economics?

Ans.  Micro economics deals small segments of economy. It is studies of particular firms, households, individual prices, wages, income, individual industries and particular goods.
Macro economics deals with functioning of economy as a whole. It is study of national income, general price level and national output of an economy.

Q-2. Who is father of economics?What is the name of his book?

Ans. Adam Smith is father of economics;his book name is "An Enquiry into the nature and causes of wealth of nations".

Q-3. What is nature of economics?

Ans. Nature of economics mean whether its subject matter is science or art. It can be both. If it is science, then it is both positive and normative.Prof, Samuelson says, Economics is oldest of the arts, the newest of the science, indeed the queen of all the social sciences.

Q-4.What are limitations of economics? 
 Ans. The study of economics faces certain limitations which are as under.

1. It is study of human activities only.
2. It is study of average man in society.
3. It deals with economic activities only.
4. Economic laws are generally considered scientific laws which are less accurate like laws of nature.

Q-5.What is the importance of economics?

Ans. Importance of economics is of two types i.e. theoretical and practical. The theoretical uses of economics implies as it helps to promote welfare, correct judgment, cultural value and useful to politicians and statesmen, It is also practically useful for consumer, producer, worker and business community.

ENGLISH (ESSAY)

IMPORTANCE OF COMPUTER

OR 

THE ROLE OF COMPUTERS IN THE MODERN AGE

Computer is one of  those new discoveries which have totally changed the complexion of modern scientific inquiry. Computer has become so common in everyday life today that no sphere of activity in modern world can afford to ignore it. From space research to business world and from entertainment to education use of computer has become a basic requirement in laboratories, offices and homes. It is a machine which never gets tired and is ready to serve us at our commands. It is the most OBEDIENT PUPIL. In developing societies as well, knowledge of computer operation and programming is becoming an integral part of school education.

In Pakistan also computer literacy programs are being gradually. made available in public and private educational institutions.

We can say "Computer is an automatic electronic, calculation device which can process  a given input in a prescribed manner to produce a desired output, at a very high speed with remarkable accuracy".
 It can also perform all arithmetic and logical functions according to instructions given in a systematic order to solve any problem and produce processed information. 

Now a days, we cannot imagine our life without computers and the fact is that have become so important that nothing can replace them.Computer has become very important nowadays because it is very much accurate, fast and can accomplish many tasks easily.
  Moreover it can store huge amount of data in it. We also get information on different aspects using internet on our computer. 
 So we can say that today computer is playing very important role in our lives. And this technology is advancing both in industry and home. It has become necessary for everyone to have the basic knowledge about computer. Otherwise he cannot get a job as computers have invaded almost all the fields.

Short story "God helps those who help themselves"

1st year 

English (short story)

GOD HELPS THOSE WHO HELP THEMSELVES

OR

NECESSITY IS THE MOTHER OF INVENTION.

 One a crow was very thirsty. It flew here and there in search of water. At last it saw a jug in a garden. There was a little water in it. But its beak could not reach there. It saw some pebbles lying nearby. It dropped them into the jug one by one. The water rose, the crow drank it and flew away.

Moral : Necessity is the mother of invention. God helps those who help themselves.

Short story "Tit for tat"

1st year

English (short story)

TIT FOR TAT

OR

   AS YOU SOW, SO SHALL YOU REAP.

Once three friends set out on long journey. On the way they found a bag full of gold. They decided to divide the gold equally among themselves. In fact, each wanted to have the whole of it.They felt hungry. One of them went to a nearby village to fetch food. He mixed some poison in the food. In his absence, the other two had decided to kill him on his return, So when he returned he was put to death. The other two ate the poisoned food and died on the spot.

Moral : Tit for tat. As you sow, so shall you reap.

 1st Year Notes:

Principles of Commerce

CHAPTER 3- TYPES OF ORGANIZATION 

(Short Question Answer)

Q1- Explain sole proprietorship?


SOLE PROPRIETORSHIP
It is the business which is owned by a single owner who is also referred to as sole proprietorship. It enjoys many benefits which other ownership cannot. Secrecy and ownership of full profit are some of its chief characteristics. However, it inherently suffers some setbacks embodying uncertain life, limited capital, and difficulty in operations.

Q2-Describe the advantages of sole proprietorship?
  
Advantages of a Sole Proprietorship

• A sole proprietor has complete control and decision-making power over the business.
• Sale or transfer can take place at the discretion of the sole proprietor.
• No corporate tax payments
• Minimal legal costs to forming a sole proprietorship
• Few formal business requirements

Q3-Describe the disadvantages of sole proprietorship?

 The disadvantages of a sole proprietorship include:

• Owners are subject to unlimited personal liability for the debts, losses and liabilities of the business.
• Owners cannot raise capital by selling an interest in the business.
• Sole proprietorships rarely survive the death or incapacity of their owners and so do not retain value.

Q4- Define partnership?

PARTNERSHIP:

“Partnership is an association of two or more persons to carry on as co owners a business for profit”.
It is a business ownership, which must have at least two partners. The maximum number is 20 but in the case of banking it is only 10. Sole proprietorship, partnership is the commonest form of ownership in the business world.

Q5-Describe the advantage of partnership?

ADVANTAGES OF PARTNERSHIP

The partnership business enjoys the following advantages.
1.   Larger Capital:
In partnership capital of the business may be greater than the sole proprietorship. Capital can be increased any time by increasing the number of partners. But in sole proprietorship the capital is limited to only one man’s contribution.
2.   High Credit Standing:
Assuming equal size, the partnership enjoys the highest credit standing of all three types of business ownerships (sole proprietorship, partnership, and company). If the assets of the business are insufficient to pay off debts, the personal property of partners can be utilized. 

3.   Combined Judgment And Skills:
It is a common belief that two heads are better than one, and it is true especially in partnership where partners have different skills, experiences, abilities and qualifications.

4.   Personal Interest:
The business and its success depends upon the enthusiastic involvement of the co owner. Partners are very keen in running their business. The business gets prosperous from their personal interest and efforts.

 Q6-Describe the disadvantage of partnership?

DISADVANTAGES OF PARTNERSHIP
  
1.  Unlimited Liability
This is a serious disadvantage in which the personal property of the partners is very much at stake if the business assets are not enough in the full settlements of the debts. That is, if the assets fall short in the payment of the firm’s debts, the unpaid balance will be recovered from the personal property of the partners in accordance with their profit sharing ratios.
2.   Divided Control And Management:
Management and control is divided among various partners owing to which many administrative problems are created. Divided control causes delayed decision. Duties and responsibilities are difficult to fix. Accountability is weak
3.   Lack Of Continuity:
Partnership lacks in continuity. It has a limited life. It comes to an end in the following situations some of which are very common.
a-   Death of a partner
b-   Admission of a partner
c-   Retirement of a partner
d-   Bankruptcy of a partner
e-   Insanity
4.   Lack Of Transferability:
Partnership has a frozen investment. Whatever once invested in the business cannot be withdrawn. If a partner withdraws his share the partnership will stand dissolve.


Q7-Write any four characteristics of partnership?

•  Mutual Contribution.  There cannot be a partnership without contribution of money, property or industry (i.e. work or services which may either be personal manual efforts or intellectual) to a common fund.
• Division of Profits or Losses. The essence of partnership is that each partner must share in the profits or losses of the venture.
•  Limited Life. A partnership has a limited life. It may be dissolved by the admission, death, insolvency, incapacity, withdrawal of a partner or expiration of the term specified in the partnership agreement.
•  Co-Ownership of Contributed Assets. All assets contributed into the partnership are owned by the partnership by virtue of its separate and distinct juridical personality. If one partner contributes an asset to the business, all partners jointly own it in a special sense.