Question

How are co-operative societies formed? Explain.

What values do these societies promote?

Answer 1

hey there,

co - operative societies are basically formed to provide service to it's members. it is a voluntary organization which attempts to serve common purposes of people who have started it.

EXAMPLES :- suppose students studying in your school can start co- operative store​ to meet their daily requirements. of study material, at reasonable prices.

FEATURES OF CO-OPERATIVE SOCIETIES :-

★ it is a voluntary organisation.

★ it's main objective and purpose is to serve the members of the society.

★ it has no profit motive, main motive of co-operative society is to provide service to it's members. surplus, if generated, is distributed as dividend amoung the members according to the laws of society.

★ it has a common goal to provide welfare of it's members.


MERITS OF CO-OPERATIVE SOCIETIES :-

★ easy formation .

★ stability.

★ limited liability.

★ Democratic management.

★ support from government.


DEMERITS OF CO- OPERATIVE SOCIETIES:-

★ lack of skilled management.

★ difference amoung members.

★ limited resources.

★ lack of secrecy.

★ excessive governmental control.