·
There are various
forms of business organization that a person having money and vision can
start.They are as follows:
·
Sole partnership or Sole Trade
·
Partnership
·
Joint Hindu Family Business
·
Co-operative Societies
·
Joint Stock Company
Co-Operative
Societies:
It is a form of business organization where
people came together with a motive of business for the welfare of the
members.They came together to protect the economic interest of its members.It
is governed by Cooperative Society Act,1912.It has a separate legal entity or
it has a separate legal identity and can be started with at least 10 people.
Features:
I.
Legal Status:In the eyes if law cooperative
society is different from its members,it means that society can enter into
contracts had a property in its name sue and be sued by others.It is not
affected by entry or exit of its members.
II.
Limited Liability:The liability of the members
are limited to the extent of amount contributed by them,this is the maximum
risk a member bear.
III.
Control:The power of decision making lies with
the elected management.This management is elected through voting system.This
lends the society a democratic character.
IV.
Service Motive:This is a form of organization
where the bask values are mutual
help and welfare,if there is any surplus generated.It will be divided equally
or inaccordance with the laws of society.
V.
Voluntary Association:A person is free to join
or leave a cooperative
society,whenever he wants.There is no compulsion to join or quit a society.Membership
is open regardless of religion,caste or gender.Although he pre leaving a person has to give a notice to the remaining members.
Types of Co-operative Societies:
Cooperative organization can take following form:
I.
Consumer Cooperative Society:These societies are
formed to protect the consumer.The members of these societies obtain quality
goods at reasonable price.They eliminate the middlemen.Thus saving the
commission.Due to which the per unit price of the product decreases.Profits,if
any are distributed on the basis of capital contribution.
II.
Producers Cooperative Societies:They are set up
to protect the interest of small producers.The big capitalists exploit the
producers by providing inputs at a very high price.These societies promotes raw
material and other inputs at low price.They also purchase the final output and
provide a good price by enhancing their bargaining power.
III.
Farmers Cooperative Society:These societies
protect the interest of farmers by promoting input at a reasonable cost.The
member of this society,decides to take up farming activities jointly.Thus saving the resources.They
provide quality seeds,fertilizers and machinery at a reasonable rates.They also
provides loans at a reasonable cost.
IV.
Marketing Cooperative Society:These are
established to help small producers in selling their products.These producers
are very often exploited by the retailer and wholesalers.These societies
eliminate middlemen and ensures a good return to the small manufacturer.
V.
Cooperative Housing Societies:These societies
are started by people with limited income to construct their own house at
limited cost.It saves the people from exploitation of property dealer and
construction agencies.The aim is to solve housing problems of the members by
providing installment payment schemes.
VI.
Credit Cooperative Society:These societies
provide easy credits to its members when they are in the need of finances.The
aim of these co-operatives is to protect the members from exploitation of
lenders.They are started in places where there is no public financial
institutions.The members bring money in small quantity and the capital
collected is used to give bans to
the members.Interest is charged at a low rate.
Comments