There is no legal binding or coercion from any corner for a person to become a member. To promote the co-operative movement and also because of the fact that it is a non-profit enterprise, government provides various exemptions and tax concessions. लाभ (Advantages) 5. List of the Advantages of a Cooperative 1. It is because there is very little link between effort and reward. Co-operative societies have contributed significantly in freeing villagers from money lenders. Marketing co-operatives eliminate middleman and ensure honest trading practices in weighing, measuring and accounting. A co – operative society is a voluntary association and may be formed with a minimum of ten adult members. Co – operative farming makes it possible for members to use modern tools and equipments good seeds, fertilizer and irrigation facilities in order to achieve higher production. These stores are, in fact, associations organised by consumers […] Its registration is very simple and can be done without much legal formalities. Cooperative Society: Meaning, Features, Types, Advantages, Disadvantages, What is Business? The rich people elect themselves to the managing committee and manage the affairs of the co-operatives for their own benefit. i. There is no incentive for working efficiently. It is a form of businesswhere individuals belonging to the same class join their hands for the promotion of their common goals. All important decisions are taken by majority. When the new member joins the society he/she needs to give some registration fees and needs to deposit some mandatory amount every month. A workplace where members put their effort both at an individual and collective level Members would be interacting with each other. Cooperatives societies can deal directly with the producers and with the ultimate consumers. Its objects to serve their members and not to maximize the profits. There is a tendency to shift responsibility among the members of the managing committee. Advantages In some cases, co-ops offer a less expensive housing option. Ans: Given below are the types of cooperative societies: Consumer Cooperative Society: Its purpose is to purchase goods directly from the manufacturer and deliver it to the consumers at a reasonable price. A co – operative society is a voluntary association of persons of moderate means , who unite together to protect and promote their common economic and social interests. They are usually cheaper, per square foot than condos in the same area, with the added benefit of lower closing costs. In this type of society, the land of the individual members is taken by society, but the ownership remains at the members. Since registration of cooperative societies became compulsory. The success of the co-operative society depends largely on the loyalty of the members. This approach to financing is an advantage when members are buying in and making contributions, but it can be a disadvantage when member-owners leave and the business has to pay back their investments. Co-operative marketing societies are voluntary associations of small producers, who find it difficult to individually sell their products at a profit. There are no entry or exit barriers. It has a fairly stable life and continues to exist for a long period. Housing Cooperative Society: This committee is formed to help the members who need lands and houses. Easy to Form- A cooperative society is a voluntary association and may be formed with a minimum of ten adult members. Generally, the selfish motive of members starts dominating and they forget the service motive . Members can give their suggestions, opinions and problems. Since the funds available are limited they cannot undertake large scale operations and is not suitable in industries requiring large investments. The membership of a cooperative society is open to all. 1. The cooperative societies promote social justice and mutual cooperation. Cooperative businesses can be financed in part by their members, whose buy-in equity can go towards working capital and expansion. The society supplies these things to the members and takes over their purchases for sale. The body is elected through ‘one-man-one-vote-system’. Disadvantages 5. Cooperative societies are based on the principles of co-operation and therefore harmony among members is important. Cooperative societies are unable to attract and employ expert managers because of their inability to pay them high salaries. In India the cooperative societies registered under Cooperative Societies Act 1912 or the state Cooperative Societies Act. The amount of capital generated by co-operative society is limited because of the members belonging to same locality or region or a particular section of people. There can be no use of force in it. Co-operation, work with the feeling of helping o… After the establishment of co-operatives, the rural people were able to come out of the grip of money lenders. If the members of the managing committee are corrupt they can swindle the funds of the co-operative society. The members are from different sections of society. Weaknesses in its Lending System. These companies are all joint stock companies. It does not get affected by the entry or exit of its members. The output is pooled together and sold at the best price. Any ten adult persons can voluntarily form themselves into an association and get it registered with the Registrar of Co-operatives. Co-operative societies have limited membership and are promoted by the weaker sections. Since the management is taken care of by the managing committee, no individual can be made accountable for in efficient performance. The surplus generated by the cooperative societies is distributed in an equitable manner among members. These societies procure land from the government and construct flats or provide plots to members on which the members themselves can construct the houses as per their choice. But business secrets cannot be maintained in cooperatives because all members are aware of the activities of the enterprise. Therefore it cannot employ the best talent. Among the mem… Consumers form a society to manage the business and profit thus earned is distributed among themselves in proportion of their contribution. Co-operative societies are formed on the basis of self help and mutual help. High yielding seeds, fertilizers, etc. Cooperative Society is very important for small business. It is an association of persons united voluntarily to meet their economics, social and cultural needs aspirations through jointly owned enterprise. Co-operative societies cannot be introduced in all industries. 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