Question

Read the following statements: Assertion and Reason. Choose one of the correct  alternatives given below: Assertion (A): The managing committee elected by members of the cooperative society  are generally not professionally equipped to handle the management functions  effectively. Reason (R): Co-operative society are unable to employee experts because of their  inability to pay them high salaries. Alternatives: a. Both assertion and reason are true and reason is the correct explanation of  assertion. b. Both assertion and reason are true and reason is not the correct explanation of  assertion. c. Assertion is true but reason is false.d. Assertion is false but reason is true.​

Answer 1

Both assertion and reason are true and the reason is also the correct explanation of assertion.

• A cooperative form of business is quite different from any other kind of business organisation.
• It is a voluntary association of people with collectively owned funds, organised on the democratic principle of equality, people who join together through mutual action, and in this, the objective is service rather than profit.
• The primary objective of a cooperative is to protect the rights of the weaker section of our society from being oppressed economically.
• Since the cooperatives aim for the betterment of society they are usually at a disadvantage in raising capital because of their low rate of return on capital invested.
• The management committee is generally inefficient because consists of part-time and inexperienced people. Qualified managers are not attracted to a cooperative because of its limited capacity to pay adequate remuneration to them.

#SPJ1