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Q. No. 17: What is cooperative society? Give its merits and demerits? ANSWER:
COOPERATIVE SOCIETIES
INTRODUCTION: Cooperative is a special form of organization. It differs from other major forms of organization as it is setup not to earn profit but to render service to its members. DEFINITION: The International Labour Office (I. L. O) defines a cooperative as: An association of persons usually of limited means, who have voluntarily joined together to achieve a common economic end and through the formation of a democratically controlled business organization, making equitable contributions to the capital required and accepting a fair share of risks and benefits of the undertaking. In the words of Calvert: A cooperative society is a form of organization wherein person voluntarily associates together human being on basis of equality of the promotion of economic interest of themselves. Simply we can define it as: It is an association of individuals who voluntarily pool their resources for carrying on a certain business for the mutual welfare of the members themselves. Explanation: From the definitions of co-operative given above we find, that the foundation of cooperative organization is based on rendering service to the members of the organization and not earning of profit. There is a co-operating among the members and not competition. It is based on self help and not a profit seeking business. It aims a more solidarity of the members and not of undercutting one another. MERITS/ ADVANTAGES OF COOPERATIVES A cooperative society has the following advantages. 1) Capital: Persons and workers with small capital can start business under cooperative enterprise. 2) Training in Management: It imparts training in management because the workers themselves manage the business. 3) End of the Class Conflict: A co-operative enterprise abolishes the difference between the employers and the employees and there remains no chance of class conflict, because the workers themselves are the owners. 4) Habit of Thrift: It encourages thrifts among the members. They do not do superfluous expenditure and save more to invest in the business. 5) Less Scope for Manipulation: The auditors check the accounts of a cooperative enterprise, which decreases the chances of manipulation of the accounts.
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CONCLUSION: Cooperative extension work is the most urgent need of the developing countries. The cooperative organization can better serve the formers in the purchase of input like seeds, fertilizers, etc. It can also help in the marketing of products at a fair price both in cities and rural areas. Cooperatives can be operated successfully under an effective policy of state towards self help the sincerity and honestly ant the Top can regenerate cooperative movement in Pakistan.
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