Question

Explain merits and limitation of Co-operative Societies ?​

Answer 1

Answer:

Merits

Ease of formation - it can be started with minimum of 10 members registration is also easy as it requires very few legal formalities.

Limited liability - The liability of member is limited to the extent of their capital contribution.

stable existence - due to registration it is a separate legal entity and is not affected by death, lunacy or insolvency of any of its members.

Economy in operations-there is economy in operation due to elimination of middleman and voluntary services provided by its members.

Government support - governments provides support by giving loans at lower interest rates, subsides and by charging less taxes.

social utility -it promotes personal liberty, social justice and mutual cooperation. they help to prevent concentration of economic power in a few hands.

limitations

shortage of capital -it's suffers from shortage of capital as it is usually formed by people with limited means.

Inefficient management - cooperative society is managed by elected members who may not be competent and experienced. moreover it can't afford to employee expert and experienced people at high salaries.

Lack of motivation - members are not inclined to put their best efforts as there is no direct link between efforts and rewards.

Lack of secrecy- it's affairs are openly discussed in its meeting which makes it difficult to maintain secrecy.

Excessive government control - it suffers from accessive rules and regulations of the government it has to get its accounts audited by the auditor and has to submit a copy of its accounts to registrar

conflict among members- the members are from different sections of society with different viewpoints sometime when some members become rigid,the result is conflict

Explanation:

please mark me as a brainliest