Question

1. Explain any 4 Merits and Demerits of Cooperative society.

See the attachment, ​

Answer 1

Answer:

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Explanation:

Legal status: Its registration is compulsory and it gives it a separate identity. Limited liability: The liability of the member is limited to the extent of their capital contribution in the society. Democratic control: Management and control lies with the managing committee elected by the members by giving vote.

hope it will help you.

Answer 2

A cooperative society is a form of organization that works for the benefit of its members.

Explanation:    

A cooperative society is a form of a business organization run for service motives.

Four merits of cooperative Society are:

1. It provides valuable services to its members.
2. It is voluntary in operations. So, there is no obligation on the members to be a part of the business.
3. Cooperative societies also provide social services to members.
4. The profits of cooperative societies are distributed on the basis of the performance of each member. So there is equity in the distribution of profits.

Four demerits of cooperative societies are:

1. Cooperative societies do not generate a huge amount of profits.
2. The members can sometimes indulge in unfair practices because their membership is voluntary on a basis.
3. Powerful members of cooperative societies have more authority in decision-making.
4. Cooperative societies sometimes indulge in unfair trade practices and ignore the rules.