Question

State two limitations of Cooperativeness.

Answer 1

Answer:

1. Limited Capital

2. Inefficient Management

Explanation:

1. Limited Capital- Cooperatives are usually at a disadvantage in raising capital because of the low rate of return on capital invested by the members.

2. Inefficient Management- The management of a co-operative society is generally inefficient because the managing committee consists of part-time and inexperienced people. Qualified managers are not attracted towards a cooperative on account of its limited capacity to pay adequate remuneration.