Question

Demeoks of co-opeocative society.​

Answer 1

Answer:

1. Voluntary organization

The membership of a cooperative society is open to all. Any person with common interest can become a member. The membership fee is kept low so that everyone would be able to join and benefit from cooperative societies. At the same time, any member who wants to leave the society is free to do so. There are no entry or exit barriers.

Answer 2

Answer:

The following are some of the disadvantages of Cooperative societies:-

1. Limited fundsCo-operative societies have limited membership and are promoted by the weaker sections.
2. Over reliance on government funds---> Co-operative societies are not able to raise their own resources. Their sources of financing are limited and they depend on government funds.
3. Benefit to rural rich--->Co-operatives have benefited the rural rich and not the rural poor. The rich people elect themselves to the managing committee and manage the affairs of the co-operatives for their own benefit.
4. Lack of managerial skills--->Co-operative societies are managed by the managing committee elected by its members. The members of the managing committee may not have the required qualification, skill or experience.
5. Government regulation--->Co-operative societies are subject to excessive government regulation which affects their autonomy and flexibility. Adhering to various regulations takes up much of the management’s time and effort.
6. Misuse of funds--->If the members of the managing committee are corrupt they can swindle the funds of the co-operative society. Many cooperative societies have faced financial troubles and closed down because of corruption and misuse of funds.