Advantages of Co-operative Societies:
1. It provides technical information to members.
2. It settles disputes among its members.
3. It improves the standard of living of its members.
4. It has a corporate existence and a perpetual succession.
5. It helps its members to obtain loan facilities from banks.
6. The profit is subject to tax.
7. It encourages the members to save.
8. They educate their members by providing training on new techniques. Monthly meetings are held where members are enlightened.
9. The members’ liability is limited to the amount contributed.
10. It enjoys economies of scaleIn microeconomics, economies of scale are the cost advantages that enterprises obtain due to their scale of operation and are typically measured by the amount of output produced per unit of... More.
Disadvantages of Co-operative Societies:
1. People who are appointed by members of the committee to take charge of the societyThe term society is derived from the Latin word 'socius' meaning friendship or companionship. Society is a community, nation or group of people who share the same traditions, institutions, rules and... More usually end up embezzling the funds which may lead to the winding up of the society.
2. The committee members may not be specialists in the management of the affairs of the society.
3. It proves difficult in most cases to recover loans given to members.
4. The capital available for investment is very low. Most of the members are low-income earners.
5. A high level of illiteracy exists among members which make their education and training very difficult.
6. There is a low return on investment because the profit distributed to members is low.
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