Maharashtra State BoardHSC Commerce 12th Board Exam
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Cooperative Society and Partnership Firm - Organisation of Commerce and Management

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Distinguish between the following:

Cooperative society and Partnership firm

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Solution

Sr.

No.

Basis of Difference

 

Co-operative Society

 

Partnership Firm

 

1.

 

 

Meaning

A Co-operative society is a voluntary association of people who come together on the basis of unity and equality to protect and promote their common economic interest.

In this form of business organization two or more persons come together to undertake a business activity and share profits.

 

2.

 

Motive

The main motto of a co-operative is to provide services to members. Profit making is its secondary objective.

The main motto of a Partnership firm is to earn profit. Providing service is the secondary motive.

 

3.

 

Membership

A minimum 10 members are required for formation of a co-operative society though there is no maximum limit.

There can be a minimum of 2 partners and a maximum of 10 partners in banking business and 20 in non-banking business.

 

4.

 

Liability

The Liability of every member in a co-operative society is limited.

 

The liability of partners is unlimited. It is joint as well as several (quit a few).

 

5.

 

Transferability  of shares

Shares can be transferred in favour of the society at any time by the members.

No partner can transfer his share in favour of others without the consent of other partners.

 

6.

 

Act

Co-operative society is governed under Co-operative society Act, 1912.

Partnership is controlled under Indian Partnership Act, 1932.

 

7.

 

Legal Status

Co-operative society enjoys an independent legal status different form its members.

Partnership firm does not enjoy an independent legal status. Legally there is no difference between the partnership firm and its partners.

Concept: Concept of Cooperative Societies
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