My study level evaluation of cooperatives, Best Topic in Business study in higher classes students in BCA, BBA Level course in books Business practice and management.Â
My Study Level Evaluation of Cooperatives : Best Topic 2024
1. Open Membership. The membership of co-operative societies is open to each and every person. Nobody is barred from joining societies on the basis of economize position, caste, colour of creed. Anybody wishing to enjoy the fruits of a co-operative can join it. The number of members of society may be limited to make it a workable group but members are not discriminated in any way.
2. Service Motto. The co-operative societies are started not for profits but for service. The societies try to promote the interests of the members. The members are provided goods at ship rates and financial help is also given at concessional rates. A feeling of co-operation is created among members.
My Study Level Evaluation of Cooperatives : Best Topic 2024
3. Supply of Goods at Cheaper Rates. The societies purchase goods directly from producers and sell them to the members at cheap rates. The middlemen are eliminated from the channel of distribution. The consumer co-operatives supply essential goods to the members at a time when there is scarcity of goods in the market. Even capital goods (like machinery etc.) are procured directly from producers and are supplied to the members. So co-operative societies ensure regular supply of goods at cheaper rates.
4. Democratic Management. The management of a co-operative is elected by the members from among themselves. All members are given equal voting rights irrespective of the number of shares held by them. Every member has equal say in formulating policies of the society. So these associations are run on democratic principles.
5. Low Management Costs. The management of a co-operative society is in the hands of persons elected by the shareholders. Some persons are employed to look after day-to-day working of the societies. Members take active interest in the working of the society. So the societies need not spend large amount on management personnel.
6. Surpluses Shared by Members. These societies sell goods to the members on a nominal profit to cover up administrative costs. Non-members are charged at market rates. The surplus earned by the society is distributed among members on the basis of their purchases. Some part of the surplus is spent on the welfare of the members. So all profits of the society are either distributed among members or are spent on their welfare.
7. Check on other Business. All other forms of business are started with a profit motive but co-operatives are started with service motive. When businessmen try to exploit consumers by raising prices of their commodities, co-operatives supply goods at reasonable prices. The co-operatives are a check on other forms of organisation. Other enterprises will have to lower their prices when co-operatives are providing these goods at lower prices. Consumers are not on the mercy of businessmen.
