Question
Cooperative societies as a form of business organisation
Answer :
Word Count : 548
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A cooperative society is a voluntary association of individuals who come together to achieve common economic, social, or business objectives through mutual cooperation. It is formed primarily to provide services and benefits to its members rather than to earn maximum profit. The basic principle of a cooperative society is “self-help through mutual help.” It is generally established under the relevant Cooperative Societies Act and is managed democratically by its members. A cooperative society is based on voluntary membership. Any person who satisfies the prescribed conditions can become a member and can also leave the society according to its rules. The members contribute capital, but ownership is collective. One of the most important features is democratic management. Each member generally has one vote, irrespective of the amount of capital contributed. Thus, control is based on equality rather than the size of investment. The liability of members is usually limited
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