Tag: meaning and features of cooperative society

Questions Related to meaning and features of cooperative society

Which of the following sentence in relation to "Cooperative Societies" are correct?
(1) There should be minimum of 20 members to for cooperative society but there is no maximum limit for the membership.
(2) According to Indian Cooperative Societies Act,1912,each society must transfer at least one-third of its profits to general reserve.
(3) Cooperative Societies may distribute maximum up to 90 per cent of its surplus as dividend to its members and can spent another 10 per cent for the welfare of the members.

organization of commerce and management ownership structures - cooperative society features, merits and demerits, formation and management of a cooperative society meaning and features of cooperative society cooperative organisation

  1. (1) only

  2. (1) & (2) only

  3. (3) only

  4. (2) & (3) only

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Correct Option: C

_____________ are formed to provide financial support to the members.

organization of commerce and management ownership structures - cooperative society features, merits and demerits, formation and management of a cooperative society meaning and features of cooperative society cooperative organisation

  1. Producers' co-operative societies

  2. Co-operative marking societies

  3. Co-operative credit societies

  4. Consumers' co-operative societies

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Correct Option: C
Explanation:

Co-operative credit societies are formed to provide financial support to the members. The society accepts deposits from members and grants them loans at reasonable rates of interest in times of need. Village service cooperative society is an example of cooperative credit societies.

The main objective(s) of co-operative society is/are _______________.

organization of commerce and management ownership structures - cooperative society features, merits and demerits, formation and management of a cooperative society meaning and features of cooperative society cooperative organisation

  1. Earning lot of profit

  2. Competition with private sectors enterprises instead of mutual help

  3. Self help in place of dependence

  4. All of above

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Correct Option: D
Explanation:
Those who want to work together with some common economic objective can form a society which is termed as 'cooperative society'. It works on the principle of self-help as well as mutual help. The main objectives of co-operative society are:
a) Earning lot of profit
b) Competition with private sectors enterprises instead of mutual help
c) Self help in place of dependence.

An association established for promoting common economic interest of members is a Co-operative society.

organization of commerce and management ownership structures - cooperative society features, merits and demerits, formation and management of a cooperative society meaning and features of cooperative society cooperative organisation

  1. True

  2. False

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Correct Option: A
Explanation:

Cooperative society works for its members. In this, minimum 10 people needs to voluntarily come together to meet their economic, social and cultural interests through a democratically controlled enterprise.

A voluntary association of persons which required minimum ten major persons for its formation is a co-operative society.

organization of commerce and management ownership structures - cooperative society features, merits and demerits, formation and management of a cooperative society meaning and features of cooperative society cooperative organisation

  1. True

  2. False

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Correct Option: A
Explanation:

To form a cooperative society, minimum 10 people needs to voluntarily come together to meet their economic, social and cultural needs through a democratically controlled enterprise.

Association which is formed for welfare of the society is co-operative society.

organization of commerce and management ownership structures - cooperative society features, merits and demerits, formation and management of a cooperative society meaning and features of cooperative society cooperative organisation

  1. True

  2. False

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Correct Option: A
Explanation:

A cooperative society is the voluntary association of people to meet their common economic, social and cultural needs and aspirations through a jointly owned and democratically controlled enterprise.

Invariably _________ is the disadvantage of  co-operative society type of organization.

organization of commerce and management ownership structures - cooperative society features, merits and demerits, formation and management of a cooperative society meaning and features of cooperative society cooperative organisation

  1. business secrecy

  2. low prices

  3. limited liability

  4. open membership

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Correct Option: A
Explanation:
Co-operative societies have to send their annual reports and accounts to the Registrar of Co-operative Societies. In this way the secrets of business become public.

A co-operative society can promise maximum ____ amount of interest on the money contributed by it's members.

organization of commerce and management ownership structures - cooperative society features, merits and demerits, formation and management of a cooperative society meaning and features of cooperative society cooperative organisation

  1. 9%

  2. 6%

  3. 5%

  4. unlimited rate of interest

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Correct Option: A

If the objective for the business organization is self help as well as mutual help. It is _____________ type of organisation. 

organization of commerce and management ownership structures - cooperative society features, merits and demerits, formation and management of a cooperative society meaning and features of cooperative society cooperative organisation

  1. partnership

  2. sole proprietorship

  3. co-operative society

  4. company

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Correct Option: C
Explanation:

The basic principle of cooperation is inherent in the statement 'Each for all and all for each'. Members of co- operative help each other and voluntary join together with the motive of welfare of the members.

The minimum number of members required to get a co-operative society registered is _______.

organization of commerce and management ownership structures - cooperative society features, merits and demerits, formation and management of a cooperative society meaning and features of cooperative society cooperative organisation

  1. 15

  2. 20

  3. 10

  4. 5

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Correct Option: C
Explanation:
The minimum members required to get a co-operative society registered is 10 and maximum 100 in case of cooperative Credit society and no limit for the remaining.