Question

Enumerate the demerits of consumers’ cooperative societies.

Answer 1

1. Inefficient management due to committee members possibly lacking expertise, and no paid professional managers.
2. Lack of motivation among honorary office-bearers, with no direct link between effort and reward.
3. Members’ ignorance of cooperative principles may lead to the misuse of funds.
4. Limited capital among members, usually with limited means, discourages investment in large amounts.