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

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Question

Discuss the limitations of cooperative form of organisation.

Answer in Brief
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Solution

Limitations of Cooperative Societies

(a) Excessive government control: Cooperative societies have to follow certain rules and regulations as imposed on them by the cooperative departments of the state government concerned. These rules include submission and auditing of accounts.

(b) Inefficiency in management: The management of a cooperative society generally comprises part-time or inexperienced people. They may not be well equipped with the skills required to handle the managerial functions effectively. Consequently, cooperative societies often lack efficiency.

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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 4.3 | Page 56

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