What are the merits of Co-operative Societies?
The merits or advantages of Co-operative Societies are as follows:
1. Easy to form:
There are less legal obligations to form a co-operative society. It can be easily established in less time and less cost. Cooperative societies can be formed with only 10 members.
2. Membership for all:
Membership of this business is open to all. There is no caste discrimination.
3. Commodities at lower prices:
Cooperative societies aim to serve the people, not to make profit. As a result consumers get products at lower prices.
4. Supply of goods at affordable prices:
There is no place for middlemen in this system. As a result, consumers can get products at affordable prices.
5. Assurance of sustainability:
The sustainability of the cooperative societies is not impaired in case of death, resigantion or bankruptcy of any member.
6. Absence of middlemen:
Cooperative societies generally do not take the help of middlemen. As a result, there is no need to depend on middlemen like wholesalers, brokers, etc. Genunine producers get benefits.
7. Management:
The management of this business believes in democratic principles and procedures. The board of directors of the association is formed with members elected from among the members of the association.
8. Tax benefits:
Special benefits is given in the case of Income tax, Sales tax, registration fee of government co-operative societies for the purpose of expanding such business.
9. Employment opportunities:
Cooperative societies have created employemnt opportunities for many people. It has eliminated the employment problem to a large extent.
10. Government cooperation:
As cooperative societies play an important role in the social and economic aspects of the country, the government provides various facilities to cooperative societies.
11. Loan facility on easy terms:
Cooperative societies provide loans to farmers, laborers and small artisans on easy terms.
12. Sale at fair price:
Arrangements are made to supply raw materials, elements, equipment required by farmers, artisans, various people at fair prices at low profit.
13. Reduction in the incidence of inflation:
Cooperative societies provide protection against possible inflationary reastions in the market due to the provision of daily used commodities.
14. Protection from exploitation:
The role of cooperative societies in protecting the common man from the exploitation of the rich class is undeniable.
15. Unites people:
Cooperative societies unite common people. As a result, people with common interests form cooperative societies to fulfill their own objectives.
16. Establishing peace in society:
By forming cooperative societies, a spirit of service develops among the people. As a result, peace is established in the society and work efforts are directed in a constructive direction.
Important Questions from this Chapter:
- Characteristics of Sole Proprietorship Business
- Characteristics of Company
- Distinguish between Partnership Business and Sole Proprietorship Business
- Features of Private limited Company
- Distinguish between Private limited Company and Public limited Company
- Disadvantages of Partnership Business
- Advantages of registration of Partnership Business
- Disadvantages of Private limited Company
- Merits of Cooperative Societies
- Steps in forming a Business
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