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Discuss the characteristics of cooperative form of organisation. - Business Studies

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Question

Discuss the characteristics of cooperative form of organisation.

Answer in Brief
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Solution

The word ‘cooperative’ means an organisation in which the stakeholders work with one another. Thus, a cooperative society is a voluntary association of individuals who join together to protect or promote their common interests.

Features of Cooperative Societies

(a) Separate legal entity: The registration of a cooperative society is compulsory under the Cooperative Societies Act, 1912. Once the registration is complete, the cooperative society is granted the status of a separate legal entity. This implies that the cooperative society can hold properties in its own name and enter into contracts. Moreover, it can sue others and can be sued by others.

(b) Management and control: A cooperative society is a democratic form of organisation as it is managed and controlled by a managing committee which is elected by the members of the society on the principle of ‘one member, one vote’.

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Chapter 2: Forms of Business Organisation - Long Answer Questions [Page 56]

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NCERT Business Studies [English] Class 11
Chapter 2 Forms of Business Organisation
Long Answer Questions | Q 4.1 | Page 56

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