(i) The formation of a co-operative society is based on ___________ motive rather than profit motive.

(ii) Public enterprises have been set up to promote private gain. (True/False)

(iii) ___________ transactions have business firms at one end and its customers on the other end.

Question

(i) The formation of a co-operative society is based on ___________ motive rather than profit motive.

(ii) Public enterprises have been set up to promote private gain. (True/False)

(iii) ___________ transactions have business firms at one end and its customers on the other end.
(A) C2B
(B) B2C
(C) B2B
(D) C2C

(iv) ___________ refers to the system of moral principles and rules of conduct applied to business.

(v) The objects of the company are contained in ___________.

(vi) IDBI was established in the year 1964. (True/False)

(vii) This is a source of short-term finance:
(A) Bank Credit
(B) Customer Advances
(C) Trade Credit
(D) All of these

(viii) IMF stands for ___________.

Accepted Answer

>

> [!TLDR]
> (i) service motive; (ii) False — public enterprises promote public welfare, not private gain; (iii) (B) B2C; (iv) Business ethics; (v) Memorandum of Association; (vi) True — IDBI was set up in 1964; (vii) (D) All of these are short-term finance sources; (viii) IMF = International Monetary Fund.
>
> **(i) Co-operative society — service motive.**
> A co-operative society is formed by persons who voluntarily come together to protect their common economic interests through mutual help. Unlike a company or a partnership, its formation is based on the **service motive** — helping members obtain goods, credit or services at fair terms — rather than on earning the maximum possible profit.
>
> **(ii) Public enterprises and private gain — False.**
> Public sector enterprises (departmental undertakings, statutory corporations, government companies) are owned and controlled by the Central or State Government and are set up to promote **public welfare** — balanced regional development, employment, infrastructure, strategic/essential goods and services — not to enrich private individuals. The statement is therefore **False**.
>
> **(iii) B2C transactions.**
> E-business transactions are classified by who is on each side of the deal. When a **business firm is at one end and its individual customers are at the other end**, the transaction is called **Business-to-Consumer (B2C)** — e.g., an online retailer selling directly to shoppers. (B2B is business-to-business, C2B is consumer-to-business, and C2C is consumer-to-consumer.)
>
> **(iv) Business ethics.**
> **Business ethics** refers to the system of moral principles and rules of conduct applied to business — standards of honesty, fairness and social responsibility that guide how a business ought to behave towards its employees, customers, shareholders, competitors and society at large.
>
> **(v) Memorandum of Association.**
> The **Memorandum of Association (MOA)** is the charter document of a company. Its **Object

Q.(i) The formation of a co-operative society is based on ___________ motive rather than profit motive.

Concept understanding — Company Formation Stages

Company Formation Stages — From Idea to Legal Entity

The Core Idea

Stage 1: Promotion

Stage 2: Incorporation

Stage 3: Subscription (or Capital Subscription)

Stage 4: Commencement of Business

Q.(i) The formation of a co-operative society is based on ___________ motive rather than profit motive.

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