28. Which of the following is not the advantage of cooperative societies?
(a) Stability
(b) Political Interference
(c) Democratic Management
(d) Tax Advantage
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tax advantage ..
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Political Interference is not the advantage of cooperative societies. Option(b) is the correct answer.
- Government laws and regulations apply to how a cooperative society conducts its daily business.
- The organization is required to maintain consistent accounting records and submit them for auditing and inspection by government officials. To the registrar the reports must be delivered.
- All of these legal requirements take a lot of time, which hinders productivity. The members can actually do very little on their own without consulting the government. This kills flexibility and prevents business expansion.
- When a political party takes office, it occasionally forgives the loans taken from cooperative societies.
- There are times when the government will not collect thousands of dollars. A cooperative society is then maintained even after it fails for political reasons.
- Hence, political interference is not an advantage of cooperative society.
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