Saturday, 18 June 2011

Merits or Advantages of Cooperative Society

Following are the important advantages or merits of cooperative societies :

1. Mutual Cooperation :-
Cooperative society is very useful for creating the spirit of love. friendship and brotherhood among the members of the society, which is the basic need of human beings.

2. Elimination of Middleman :-
The co-operative society eliminates the profit of the middleman. Because society purchases goods directly from the producers and provides it on wholesale price to its members.

3. Financial Assistance :-
The cooperative societies also provide financial assistance to its members. For example in case of house building for the purchase of inputs these provide loans.

4. Saving in Expenditure :-
A society is generally carried on by the members, so there is no heavy expenditure on management. It reduces the coal of production.

5. Increase in Employment :-
The cooperative societies are providing job facility to thousands people in every country. So these have reduced the rate of unemployment.

6. Equal Rights :-
All the members of the society have an equal rights and each member has one vote.

7. Equal Distribution of Wealth :-
Due to cooperative society the profit of capitalists reduces. The profit of middleman is also distributed among the workers. So these societies remove the unequal distribution of wealth.

8. Improves the Standard of Living :-
The cooperative society provides the goods to the members on low price. So the purchasing power of the people and their standard of living improves.

9. Tax Concession :-
It is an advantage that Govt. provides various concessions like super tax, income tax to the co-operative societies.

10. Protection of Mutual Interest :-
Members of the society take an advantage of mutual interest and cooperate with each other to achieve the common objective.

11. Advantage for Farmer :-
The farmers can obtain their inputs like seeds fertilizers on low prices. They can also sell their product at higher price through the co-operative society.

12. Supply according the Demand :-
The cooperative society purchases the goods according the demand of the members. So it does not keep any surplus stock.


Anonymous,  3 May 2013 at 06:18  

This is nice I really like ur definations. Thanx

frank chima 9 March 2014 at 15:34  

That's good, more grease to ur elbow, You laid some useful points and definition on the subject matter and clear explanation.

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