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Economics FROM 4 ART

CHAPTER 3 :BUSINESS UNIT(ORGANISATION)

DIVIDEND

It is the return on a share. It is calculated as Rate of dividend X the face value of the share

Rate of dividend

           The rate of dividend is the dividend expressed as a percentage or the face value of the share. It is calculated as;

Rate of dividend= Dividend/face value of the share X 100/1

CAPITAL GEARING

           The geary is the ratio of ordinary share capital to debentures and preference share capital. When ordinary share capital is greater than preferent share and debenture capital then the company is low gear. The way the prefrent share and debenture capital is greather than the ordinary share capital then it is low gear.

           If the 2 are equal it is a balance geared.

CO-OPERATIVE SOCIETIES

           It is a business organization in which people voluntary come together to promote their own economics interest.It is formed by those with low income who cannot make use of the services of commercial banks. There are guided in their actions by selfhelp, self interst and self sacrifice. It is an association of people, not an association of capital as in the case with the joint stock company. The first co-operative society was in 1844 in Rochdade.

CHARACTERISTICS OF CO-OPERATIVE SOCIETY

           These characteristics are also known as Rochdate principles and they include ;

  • All members participate fully in the business because each have an interest to defend and to insure welfare.
  • There is open membershop, a registration fee must be paid to become a member.
  • There is democracy a management and control each member is entilled to only one vote.
  • Little interst is paid on money lent to members
  • Elected members are free to take part in the management of the co-operative society.
  • Members have limited liability
  • Capital is supplied by members and controlled by workers.
par Claude Foumtum