Question

Discuss the advantages of cooperative organisation

Answer 1

Ease of formation
open membership
limited liability
continuity and stability
Democratic management
Internal financing
low operating cost
cheaper and better supplies
state patronage
social utility

Answer 2

ADVANTAGES OF COOPERATIVE ORGANISATION

• Easy to form :- The formation of cooperative organisation is a very simple process. Only 10 adult members having common interest are required to form it. The registration procedure for Cooperative organisation is very simple and does not involved any legal formalities.
• Limited Liability :- The liability of members of cooperative organisation is limited to the extent of their capital contribution in the Cooperative organisation. At the time of losses the creditors cannot have claim over the personal property of members.
• Continuity :- The cooperative society has a separate legal existence. The death, insolvency or in capacity of any member does not affect the existence of society. The cooperative organisation has a stable and continuous life and exist for a long period of time.