Question

What is the Diffrenciate between limited liability company and co operative society

Answer 1

Answer:Limited liability means that owners of a corporation or members of a cooperative are not personally responsible for the debts the company incurs. It also means that if the company should do something that's against the law, the owners or members can't be held personally responsible.

Explanation:

Answer 2

The difference between the limited liability companies and co-operative societies are based on several individual criteria such as company objectives,membership criteria,individual liability,capital share and profit surplus.

Explanation:

Difference between limited liability companies and co-operative societies:-

• The primary goal or objective of private limited liability companies is to earn and maximize economic or financial profit.In contrast,cooperative societies are primarily aimed at ensuring the benefits and conveniences of its members or organisational participants.
• The investors or members of cooperative firms are usually chosen or selected from local communities or surrounding regions.However,the investors or shareholders of the limited liability companies can be practically anyone who is willing to invest in the business.
• As suggested by the name,the financial liabilities of members of a limited liability company is limited,whereas,it is unlimited for cooperative societies.
• For a limited liability company,the shares or stocks of the company are shared proportionately among the existing investors or shareholders.But the shares or stocks or cooperative societies are not shared or given each investor or shareholder as such.
• In a limited liability company,the profit share is also distributed to the existing investors or shareholders in the form of equity based on their respective amount of share or investment.On the other hand,the profit share in cooperative firms is divided based on the purchase level of the members or investors.