Forms of Business Organisations
A cooperative society is voluntary association of persons who join together, with the motive of welfare of its members. Features of cooperative society are voluntary membership, legal status, limited liability, control and service motive. The merits ofcooperative society are equality in voting status, limited liability, stable existence, economy in operations, support from governmentand ease of formation. Some of the limitations of a cooperative society are limited resources, inefficiency in management, lack of secrecy, government control and differences of opinion. Typesof cooperative societyare Consumer’s Cooperative Societies, Producer’s Cooperative Societies, Credit Cooperative Societies, Marketing Cooperative Societies, Housing Cooperatives and Farmers’ Cooperative Societies.
Consumer’s Cooperative Societies areestablished for protecting the interest of consumers. Producer’s Cooperative Societies are formed to protect the interest of small producers. Marketing Cooperative Societies areformed to help small producers in selling their products. Farmer’s Cooperative Societies are formed to protect the interest of farmers by improving their yield and returns. Credit Cooperative Societies are formed to provide easy credit on reasonable terms to the members. Cooperative Housing Societies are formed to help people with limited income to construct houses at reasonable costs.