what are the advantage of co operative
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Its main advantage is that it exists and operates for the benefit of its patron members. At the same time, since the members are also the owners, they have a financial interest in the success of the cooperative which sways them toward giving it their full support and patronage...
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Advantages:
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.
7. State Assistance:
Government has adopted cooperatives as an effective instrument of socio-economic change. Hence, the Government offers a number of grants, loans and financial assistance to the cooperative societies – to make their working more effective.
8. Democratic Management:
The management of cooperative society is entrusted to the managing committee duly elected by the members on the basis of ‘one-member one -vote’ irrespective of the number of shares held by them. The proxy is not allowed in cooperative societies. Thus, the management in cooperatives is democratic.
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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.
7. State Assistance:
Government has adopted cooperatives as an effective instrument of socio-economic change. Hence, the Government offers a number of grants, loans and financial assistance to the cooperative societies – to make their working more effective.
8. Democratic Management:
The management of cooperative society is entrusted to the managing committee duly elected by the members on the basis of ‘one-member one -vote’ irrespective of the number of shares held by them. The proxy is not allowed in cooperative societies. Thus, the management in cooperatives is democratic.
Hope it helped you.
Mark it as Brainliest.
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