Question

The Cooperative form of organisation is suitable only for small scale business" Do you
apree? Elaborate.








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Answer 1

Explanation:

Definition of Cooperative Form of Business:

Single ownership firms, partnership firms and the joint stock companies are described as capitalistic form of business organisation. All these forms of business organisation are operated with a view to making profits. The society, as a whole, loses in many ways because of the profit motive.

Large sums are spent for advertisement, propaganda, etc., the workers are exploited, the consumers are forced to pay high prices, the production of luxuries is encouraged and that of necessaries neglected. In the opinion of many writers, production may be carried on without these evils through a form of business organisations which is called cooperation. A business organisation modelled on the principle of cooperation is called a cooperative society.