Tamil Nadu Board of Secondary EducationHSC Commerce Class 11th
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Advantages and Disadvantages of Cooperative

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  • Advantages
  1. Voluntary organization
  2. Easy formation
  3. Democracy
  4. Equal distribution of surplus
  5. Limited liability
  6. Separate legal entity
  7. Each for all and all for each
  8. Greater identity of interests
  9. Government support
  10. Elimination of middlemen
  11. Tax concessions
  12. Rural credit
  • Disadvantages 
  1. Limited funds
  2. Over reliance on Government funds
  3. Imposed by Government
  4. Benefit to rural rich
  5. Inadequate rural credit
  6. Lack of managerial skills
  7. Government intervention
  8. Misuse of funds
  9. Inefficiencies leading to losses
  10. Lack of secrecy
  11. Conflicts among members
  12. Limited scope
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