Question

Explain any three merits of cooperative organisation

Answer 1

Heya user ! here ur answer.

Merits of cooperative organisation:

1. Easy Formation: A
cooperative society can be formed easily .Any 10 adults can establish a cooperative society by getting it registered with the registrar of cooperative societies.It does not require any difficult and expensive Legal procedure .


2. Limited liability: The liability of the member in this organisation is limited to the shares of the guarantee given by them .

3. Stability: Being a separate entity,a cooperative society possess the advantage of stability which means that the death or bankruptcy of member have no effect on it .

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.