Explain any four advantages of consumer cooperative societies

cbse
formsofbusiness

#1

Explain any four advantages of consumer cooperative societies.
OR
Explain any three merits of a cooperative society.


#2

The advantages of consumer cooperative societies are as follows:
1.Equality in voting right: A cooperative society is governed by the principle of ‘one man one vote’. Each member has equal voting right irrespective of his capital contribution in the society.
2.Ease of formation : Minimum ten members are required to form a cooperative society. The procedure for the registration of the society is very simple and involves a few legal formalities.
3.Limited liability : The members have limited liability to the extent of the capital contributed by them. Therefore, they cannot be held personally liable for the payment of debts.
4.Support from government : The government provides subsidy to these societies and charges a very low rate of interest on loans given to them. The rate of taxes is also very low.