1. Easy Formation: A cooperative society can be formed easily as compared to other forms of business organizations.
2. Democratic Management: Cooperative societies are run on democratic principles. Each member has an equal right to participate in the management and decision-making process of the society.
3. Limited Liability: Members of a cooperative society have limited liability. In case of losses, their liability is limited to the extent of their share capital.
4. Availability of Capital: A cooperative society can raise capital from its members as well as from other sources like banks and financial institutions.
5. Tax Benefits: Cooperative societies enjoy certain tax benefits, such as exemption from income tax on their surplus income.
Disadvantages of Cooperative Society:
1. Limited Resources: A cooperative society may face problems in raising sufficient capital, as the number of members is limited.
2. Lack of Professional Management: The management of a cooperative society is generally in the hands of the members, who may not possess the necessary skills and expertise to run the society efficiently.
3. Inefficient Decision Making: In a cooperative society, decision making is often slow and inefficient due to the involvement of a large number of members.
4. Lack of Motivation: Members of a cooperative society may lack motivation, as they may not receive sufficient financial incentives for their contributions.
5. Conflict among Members: Conflict among members is common in a cooperative society, especially when it comes to decision-making and distribution of profits.
Answers & Comments
Answer:
Advantages of Cooperative Society:
1. Easy Formation: A cooperative society can be formed easily as compared to other forms of business organizations.
2. Democratic Management: Cooperative societies are run on democratic principles. Each member has an equal right to participate in the management and decision-making process of the society.
3. Limited Liability: Members of a cooperative society have limited liability. In case of losses, their liability is limited to the extent of their share capital.
4. Availability of Capital: A cooperative society can raise capital from its members as well as from other sources like banks and financial institutions.
5. Tax Benefits: Cooperative societies enjoy certain tax benefits, such as exemption from income tax on their surplus income.
Disadvantages of Cooperative Society:
1. Limited Resources: A cooperative society may face problems in raising sufficient capital, as the number of members is limited.
2. Lack of Professional Management: The management of a cooperative society is generally in the hands of the members, who may not possess the necessary skills and expertise to run the society efficiently.
3. Inefficient Decision Making: In a cooperative society, decision making is often slow and inefficient due to the involvement of a large number of members.
4. Lack of Motivation: Members of a cooperative society may lack motivation, as they may not receive sufficient financial incentives for their contributions.
5. Conflict among Members: Conflict among members is common in a cooperative society, especially when it comes to decision-making and distribution of profits.
Answer:
Some of the advantages of a cooperative society are:-
1. Easy to Form
2. Open Membership
3. Democratic Management
4. Limited Liability
5. Stability
6. Economical Operations
7. Government Patronage
8. Low Management Cost
9. Mutual Co-Operation
10. No Speculation
11. Economic Advantages
12. Service Motive
13. Internal Financing
14. Income Tax Exemption
15. Durability
16. Cheaper Goods
17. State Patronage
18. Elimination of Middleman
19. Equality
20. Perpetual Existence
21. Scope for Self-Government.
Some of the disadvantages of a cooperative society are:-
1. Limited Capital
2. Inefficient Management
3. Absence of Motivation
4. Differences and Factionalism among Members
5. Rigid Rules and Regulations
6. Lack of Competition
7. Cash Trading
8. Lack of Secrecy
9. Weightage to Personal Gains
10. Lack of Incentive and Initiative
11. Corruption
12. Limited Consideration
13. High Interest Rate
14. Undue Government Intervention
15. Differences of Opinion
16. Lack of Expertise
17. State Control
18. Lack of Loyalty
19. Lack of Understanding of Principle of Cooperative Societies
20. Lack of Universal Applicability.
HERE IS UR ANSWER