Lesson Notes By Weeks and Term - Senior Secondary 1

Joint stock companies and cooperative societies

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Term: 2nd Term

Week: 6

Class: Senior Secondary School 1

Age: 15 years

Duration: 40 minutes of 2 periods each

Date:       

Subject:      Economics

Topic:-       Joint stock companies and cooperative societies

SPECIFIC OBJECTIVES: At the end of the lesson, pupils should be able to

  1. Define joint stock companies and cooperative societies
  2. State the features of joint stock companies and cooperative societies
  3. Highlight the advantages and disadvantages of joint stock companies and cooperative societies
  4. Outline the sources of funds for joint stock companies and cooperative societies

INSTRUCTIONAL TECHNIQUES: Identification, explanation, questions and answers, demonstration, videos from source

INSTRUCTIONAL MATERIALS: Videos, loud speaker, textbook, pictures

INSTRUCTIONAL PROCEDURES

PERIOD 1-2

PRESENTATION

TEACHER’S ACTIVITY

STUDENT’S ACTIVITY

STEP 1

INTRODUCTION

The teacher reviews the previous lesson on sole proprietorship and partnership

Students pay attention

STEP 2

EXPLANATION

She explains the meaning of joint stock companies. She further discusses the features, advantages, disadvantages and sources of funding for joint stock companies.

 

Students pay attention and participates

STEP 3

DEMONSTRATION

She explains the meaning of cooperative societies. She further discusses the features, advantages, disadvantages and sources of funding for cooperative societies

 

Students pay attention and participate

STEP 4

NOTE TAKING

The teacher writes a summarized note on the board

The students copy the note in their books

 

NOTE

BUSINESS ORGANIZATIONS

JOINT STOCK COMPANIES
Joint ventures or enterprises can be defined as those businesses in which private investors and governments are in partnership. In other words, these are ventures which are set up by government in collaboration with private firms.

 

FEATURES OF JOINT STOCK COMPANIES 

  1. Limited liability
  2. perpetual succession
  3. separate legal entity
  4. transferability of shares
  5. separate management and ownership

 

ADVANTAGES OF JOINT STOCK COMPANIES

  1. Huge Financial Resources
  2.  Efficient Management
  3.  Limited Liability
  4.  Transferability of Share
  5.  Diffusion of Risk
  6.  Stability
  7. Public Confidence
  8. Scope for Expansion is limitless

 

DISADVANTAGES OF JOINT STOCK COMPANIES

  1. Lack of secrecy
  2. Delay in decisions
  3. Conflict of interest
  4. difficult to form
  5. Double taxation

 

SOURCES OF FUNDS FOR JOINT STOCK COMPANIES

  1. Issuing shares
  2. commercial banks
  3. debentures
  4. equity capital
  5. debt capital
  6. government grants
  7. public deposits

 

COOPERATIVE SOCIETIES

A co-operative society is an association of people with a common interest,

formed for the purpose of engaging in a business or providing services for

the members.

 

FEATURES OF CO-OPERATIVE SOCIETIES

  1. There is no limit to the size of its membership
  2. Profits are shared on the basis of patronage
  3. They have unlimited liability
  4. In most cases, the owners of the co-operative societies are the customers of the enterprise
  5. The aim of setting up a co-operative society is to help the members.
  6. It is a highly democratic form of business organisation
  7. The business is not a separate legal entity

 

TYPES OF CO-OPERATIVE SOCIETIES

  1. Producers’ Co-operative: It is an association of producers of a particular commodity.
  2. Consumers’ Co-operative: It is an association of consumers. They buy in bulk at wholesale prices and sell at retail prices.
  3. Credit and Thrift Co-operatives: They are formed by a number of persons with the aim of either saving money together or making it possible for them to borrow money easily from banks.

 

ADVANTAGES OF COOEPRATIVE SOCIETIES

  1. easy to form
  2. Limited liability
  3. stable
  4. equality in voting rights
  5. support from the government

 

DISADVANTAGES OF COOPERATIVE SOCIETIES

  1. conflicts and disputes
  2. lack of privacy
  3. lack of efficiency
  4. government control
  5. limited resources

 

SOURCES OF FUNDS FOR COOPERATIVE SOCIETIES

  1. members’ contributions
  2. interests on loans
  3. occasional charges
  4. return on investments
  5. fixed deposits
  6. profits

 

EVALUATION:    1. Define “joint stock companies” and “cooperative societies”

  1. Discuss joint stock companies and cooperative societies under the following headings:
  2. features
  3. advantages
  4. disadvantages
  5. source of funds

CLASSWORK: As in evaluation

CONCLUSION: The teacher commends the students positively