Advantages of Co-operative Society
A Co-operative form of telephone circuit organization has the following advantages:
Ø lax Formation: Formation of a co-operative society is very light compared to a joint stock comp any. Any ten adults jakes voluntarily form an association and get it registered with the Registrar of Co-operative Societies.
Ø well-defined Membership: Persons having common interest batch form a co-operative society. Any competent person can become a member at any time he/she likes and can leave the society at will.
Ø Democratic Control: A co-operative society is controlled in a democratic manner. The members cast their choose to elect their representatives to form a committee that looks after the periodic administration. This committee is accountable to all the members of the society.
Ø Limited Liability: The indebtedness of members of a co-operative society is limited to the extent of capital contributed by them. Unlike sole proprietors and partners the personal properties of members of the co-operative societies are free from any kind of risk because of business liabilities.
Ø Elimination of Middlemens kale: Through co-operatives the members or consumers control their own supplies and thus, middlemens gelt is eliminated.
Ø State Assistance: Both Central and State governments turn in all kinds of help to the societies. Such help may be provided in the form of capital contribution, loans at low evaluate of interest, exemption in tax, subsidies in repayment of loans, etc.
Ø Stable spiritedness: A co-operative society has a fairly stable career and it continues to exist for a long period of time. Its existence is non affected by the death, insolvency, lunacy or resignation of any of its members.
Limitations of Cooperative Society
Besides the above advantages, the co-operative form of business organization also suffers from various limitations. Let us condition these limitations.
Ø Limited Capital: The amount of...If you want to get a full essay, order it on our website: Ordercustompaper.com
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