It is quite easy to form a cooperative society. Its membership is open to all and the liability of members is limited". In the light of this statement, state the merits of cooperative society.
The three merits of cooperative society are
(i) Ease of Formation: It is quite easy to form a cooperative society. Any ten adults can join together and form themselves into a cooperative. Very little time and money is required to get a cooperative society registered. The legal formalities are very few and simple.
(ii) Open Membership :Any person having a common interest can become a member of a cooperative society and can leave the society at anytime.
(iii) Limited Liability: The liability of every member is limited to the extent of his share in the society’s capital. Therefore, the risk faced by every member is limited.