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To continue further you must certify the following: 1.I am at least 18 years of age (or the legal age in my country and state of origin); 2.Ø Elimination of Middlemen’s Profit: Through co-operatives the members or consumers control their own supplies and thus, middlemen’s profit is eliminated.Ø State Assistance: Both Central and State governments provide all kinds of help to the societies.Again, because of limited capital they are not able to get the benefits of professional management.Ø Lack of Motivation: Every co-operative society is formed to render service to its members rather than to earn profit.Again due to low rate of return the members do not invest more capital.
Advantages and Disadvantages of Co-operative Society Advantages of Co-operative Society A Co-operative form of business organisation has the following advantages: Ø Easy Formation: Formation of a co-operative society is very easy compared to a joint stock company.Ø Limited Liability: The liability of members of a co-operative society is limited to the extent of capital contributed by them.Unlike sole proprietors and partners the personal properties of members of the co-operative societies are free from any kind of risk because of business liabilities.Any ten adults can voluntarily form an association and get it registered with the Registrar of Co-operative Societies.Ø Open Membership: Persons having common interest can form a co-operative society.
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