ADVANTAGES OF COOPERATIVE SOCIETY

ADVANTAGES OF COOPERATIVE SOCIETY

1. Limited Liability

The liability of each member in cooperative society is limited to the share capital, which he invested. His remain safe.

2. Mutual Cooperation

It is worthwhile to mention here that cooperative society is very useful for creating the spirit of friendship and brotherhood among the members. Cooperative society is the basic need of human being in modern era.

3. No Monopoly

A start of the society is the end of monopoly. The monopoly eliminates the competition and controls the market and prices. The society tries to restore competition and to eliminate control over market and prices.

4. Open Membership

The membership of a cooperative society is open for all people living in the same area. It is a voluntary association of persons of any caste, color and creed.

ADVANTAGES OF COOPERATIVE SOCIETY

5. Protection of Mutual Interest

In cooperative societies its members take an advantage of mutual interest and cooperate with each other achieve the common interest.

6. Responsibility

A society is a training centre for the members to feel their responsibility. A cooperative Society is an ideal place for building up the moral character and development of personal qualities of the members.

7. Supply according to Demand

Such societies purchase the goods according to the demand of members. The question of surplus does not arise.

8. Stable Life The cooperative societies, as compared to other business organization like soleproprietorship or partnership, exist for a longer period. It has a fairly stable life.

ADVANTAGES OF COOPERATIVE SOCIETY

9. Saving in Expenditure

In cooperative societies, most of offices bearers work voluntarily. So, there are no heavy expenditures on management. It also reduces the cost of production.

10.Tax Concession

Government provides certain concessions to cooperative societies, i.e. exemption from stamp duty, super tax, income tax and registration fee etc.