Amul is a popular brand managed by the Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF). At present, it is jointly owned by 3.03 million milk producers in Gujarat. On the basis of the above statement, explain any three features of promoting a business in the form of a cooperative society.
Answers
Answer: Three features of promoting a business in the form of a cooperative society are -
1. Voluntary Membership.
2. Legal Status.
3. Limited Liability.
Explanation:
1.Voluntary Membership - The membership of a coorperative society is voluntary. A person is free to join a cooperative society , and also leave anytime as per his desire.
2. Legal Status - Registration of a cooperative society is compulsory.This accords a separate identity to the society which is distinct from its members.
3. Limited Liability - The Liability of the members of a cooperative society is limited to the extent of the amount contributed by them as capital. This defines the maximum risk that a member can be asked to bear.
Explanation: Amul is a popular brand managed by the Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF). At present, it is jointly owned by 3.03 million milk producers in Gujarat. On the basis of the above statement, explain any three features of promoting a business in the form of a cooperative society.