What Are The Features Of Cooperative Undertakings?

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What Are The Features Of Cooperative Undertakings?

3 Answers

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Answer 1

Features of cooperative undertaking:
The chief features of cooperative organization are:
(1) Body cooperate
The cooperative society is registered. Being a corporate body, it enjoys certain privileges which are enjoyed by company on its incorporation.
(2) Voluntary association
The membership of cooperative society is voluntary. Any person having a common interest can become the member of a society.

(3) One man one vote
In a cooperative society, a member has only one vote irrespective of the shares held by him. The principle of one man vote makes the society truly democratic.
(4) Service motive
A cooperative society is primarily set p for rendering service to its members in a particular field. A society is however not debarred to earn profit on the service provided to the non members.

(5) Distribution of profits
In case of partnership and company, the profit is distributed among members on the basis of capital held by them. In cooperative organization, the profile is distributed among the members on the basis of individual purchase made by them inv the trading year.
(6) Control and management
Each member has one vote in the cooperative society. The members elect the managing committee to carry on day to day affairs of the company. The managing committee carries out the policy as laid down in the general meeting of the society.

Answer 2

A co-operative society is registered according to the requirement of co-operative society's act 1925. Persons running the society are known as members of the society. Minimum 10 persons are required to form a co-operative society and there is no maximum limit. A co-operative society is formed for service motive. It's member's works for the common interest, of each other. Its members contribute capital of the co-operative society by the purchase of shares. Its persons are poor and week people so they cannot contribute large amount of capital.

Due to limited resources this form of business organization is not suitable for large scale. Its members are responsible to manage the affairs of the society. Society can pay some salary to its members for their services, because the main goal of the co-operative society is to work in the benefit of its members. So if there is any surplus in any period it will be distributed among the members. It is the voluntary association of persons. Any person can become the member of the society by fulfilling the requirements and any member can leave it at any time. Members of the co-operative society can so some business activity for the common interest. Purpose of this society is to serve its members.

Answer 3

Cooperative organization: - A cooperative undertaking or organization is a voluntary association of individuals for the common interest of its members. It is formed for conducting some business activities. It is a protective device used by the economically weak persons of the society to safeguard their common interest against the exploitation of economically strong. The cooperative may thus be organized not for earning profit as main motive but with the basic object of organizing to render services to its members. It is a democratic form of organization in which the consumers are the owners and managers. Mr. Plunket says that the cooperation is self-help made effective by organization.

1. Voluntary Association. It is a voluntary association of persons where there is no restriction for its membership. Any person can become a member of society and can leave it at any time after due notice to the society.
2. Equality. The capital of the society is generally divided into a member of shares of equal value. In this form of organization all members enjoy equal rights of ownership and consider equal voice in management of the cooperative enterprise.
3. Honesty. Its members must not be dishonest and selfish. All the activities must be carried on honestly and fairly.