Question

What are the disadvantages of co operative society?

Answer 1

Answer:

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

Answer 2

A cooperative society is a voluntary organization of people who come together for service motives.

Explanation:

• A cooperative society is an organization where people come together on a voluntary basis for servicing each other. Disadvantages of cooperative Society are as follows:

1. A cooperative society does not ensure profit maximization to its members.
2. Even if there is any surplus, that is divided to the members on the basis of their investment or performance.
3. Cooperative societies are greatly influenced by the powerful members due to which the less powerful members do not have much say in the operation of the societies.