COOPERATIVE SOCIETY - MERITS AND DEMERITS
MAY 12, 2020
DAY 2
2nd period in 11 B and 5th period in 11 A
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DAY 2
2nd period in 11 B and 5th period in 11 A
THANK YOU FOR LOGGING IN. GOOD MORNING BOYS!
PLEASE MARK YOUR ATTENDANCE THROUGH THE FOLLOWING LINKS:
LEARNING OUTCOMES- At the end of the lesson, students will be able to:
1) Explain the merits of cooperative society.
2) Discuss the demerits of cooperative society.
WATCH A SMALL VIDEO FIRST TO UNDERSTAND THE TOPIC BETTER:
NOW TAKE DOWN THE NOTES:
Q.19 Explain the merits of cooperative society .(5)
Ans- 1.Equality in voting status-
a) Cooperative society functions on the basis of 'one man one vote' .
b) Every member has equal voting rights and elect members for the Managing Committee.
2. Limited liability -
a) The personal assets of each member are safe as their liability is limited to the capital contributed by them.
b) Each member knows the amount of financial risk it may have to suffer.
3. Continuity -
a) Cooperative societies are legally seperate from its members .
b)Members may come or go, operations of cooperative society do not get affected by the retirement or insolvency of its members.
4.Economy in operations-
a) Affairs of the society are run by society members on voluntary basis, so the cost of running is very less .
b) The society members are the producers and consumers themselves, so risk of losing money is very less .
5. Support from government-
a) The cooperative societies get support from government in the form of lower taxes, interest rates and subsidies.
Q.20 Explain the limitations of cooperative society. (5)
Ans- 1. Limited Resources-
a) Cooperative Society always have very limited resources as the main finance is the capital
contributions from its members only.
b)Low rate of return and one man one vote policy also discourage the members from investing more capital.
2. Inefficiency in management -
a) Due to limited finance and voluntary services , cooperative society cannot employ individuals with expertise to manage the affairs professionally.
3. Lack of secrecy-
a)The cooperative societies Act requires members to discuss on its operations in the meetings and disclose all the decisions , therefore maintaining secrecy is just not possible as they have to publish their documents for the general public.
4.Government control -
a) Cooperative society are required to follow government rules and regulations related to
submission and auditing of accounts
b) This reduces freedom of operation.
5. Difference of opinions-
a) Difference of opinion and individual interests may lead to conflicts amongst the members and as a result the welfare motive make get dominated by the personal interests and benefits.
GOD BLESS YOU ALL!
Ans- 1.Equality in voting status-
a) Cooperative society functions on the basis of 'one man one vote' .
b) Every member has equal voting rights and elect members for the Managing Committee.
2. Limited liability -
a) The personal assets of each member are safe as their liability is limited to the capital contributed by them.
b) Each member knows the amount of financial risk it may have to suffer.
3. Continuity -
a) Cooperative societies are legally seperate from its members .
b)Members may come or go, operations of cooperative society do not get affected by the retirement or insolvency of its members.
4.Economy in operations-
a) Affairs of the society are run by society members on voluntary basis, so the cost of running is very less .
b) The society members are the producers and consumers themselves, so risk of losing money is very less .
5. Support from government-
a) The cooperative societies get support from government in the form of lower taxes, interest rates and subsidies.
Q.20 Explain the limitations of cooperative society. (5)
Ans- 1. Limited Resources-
a) Cooperative Society always have very limited resources as the main finance is the capital
contributions from its members only.
b)Low rate of return and one man one vote policy also discourage the members from investing more capital.
2. Inefficiency in management -
a) Due to limited finance and voluntary services , cooperative society cannot employ individuals with expertise to manage the affairs professionally.
3. Lack of secrecy-
a)The cooperative societies Act requires members to discuss on its operations in the meetings and disclose all the decisions , therefore maintaining secrecy is just not possible as they have to publish their documents for the general public.
4.Government control -
a) Cooperative society are required to follow government rules and regulations related to
submission and auditing of accounts
b) This reduces freedom of operation.
5. Difference of opinions-
a) Difference of opinion and individual interests may lead to conflicts amongst the members and as a result the welfare motive make get dominated by the personal interests and benefits.
GOD BLESS YOU ALL!
Aarav sharma
ReplyDelete11 B
Roll no. 34
Jeff Frazear James
ReplyDeleteRoll no 15
Rohit jacob
ReplyDelete11B
12
Austin petet
ReplyDelete11B
27
Darsh Jain
ReplyDelete11-A
Roll no. 19
Darell Pinto
ReplyDelete11-A
34
Soham Dey
ReplyDeleteRoll No 8
Zaid Khan
ReplyDelete11-A
26
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