Question

give two advantages of cooperative soc...

Answer 1

Answer:

Unlike other three forms of business ownership, a cooperative society is exempted from income-tax and surcharge on its earnings up to a certain limit. Besides, it is also exempted from stamp duty and registration fee.

Explanation:

Economical Operations- The operation of a cooperative society is quite economical due to elimination of middlemen and the voluntary services provided by its members. 7. Government Patronage- Government gives all kinds of help to co-operatives, such as loans at lower rates of interest and relief in taxation.

Answer 2

Answer:

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▶1. Easy Formation:

Compared to the formation of a company, formation of a cooperative society is easy. Any ten adult persons can voluntarily form themselves into an association and get it registered with the Registrar of Co-operatives. Formation of a cooperative society also does not involve long and complicated legal formalities.

▶2. Limited Liability:

Like company form of ownership, the liability of members is limited to the extent of their capital in the cooperative societies.

▶3. Perpetual Existence:

A cooperative society has a separate legal entity. Hence, the death, insolvency, retirement, lunacy, etc., of the members do not affect the perpetual existence of a cooperative society.

▶4. Social Service:

The basic philosophy of cooperatives is self-help and mutual help. Thus, cooperatives foster fellow feeling among their members and inculcate moral values in them for a better living.

▶5. Open Membership:

The membership of cooperative societies is open to all irrespective of caste, colour, creed and economic status. There is no limit on maximum members.

6. Tax Advantage:

▶Unlike other three forms of business ownership, a co­operative society is exempted from income-tax and surcharge on its earnings up to a certain limit. Besides, it is also exempted from stamp duty and registration fee.