Ganga Dhar was working under the production unit of a large scale company producing wide variety of toiletries for last five years. Though the company earns huge profits but no increment or bonus is given to the workers. To the employees, the company doesn't give any concession or discount if they want to purchase the products manufactured in the company directly from sales department. Ganga Dhar with his 10 other colleagues decided to resign from his job. They decided to open their own business organisation, where economic interest of all its members will be promoted, values of mutual help and welfare will be emphasised, the goods and services will be made available directly from producers to consumers at very reasonable prices by elimunating the role of middlemen.
(a) Name and explain the form of organisation which Ganga Dhar has decided to opt for his business.
(b) Explain briefly any four merits of such type of organisation.
Ganga Dhar was working under the production unit of a large scale company producing wide variety of toiletries for last five years. Though the company earns huge profits but no increment or bonus is given to the workers. To the employees, the company doesn't give any concession or discount if they want to purchase the products manufactured in the company directly from sales department. Ganga Dhar with his 10 other colleagues decided to resign from his job. They decided to open their own business organisation, where economic interest of all its members will be promoted, values of mutual help and welfare will be emphasised, the goods and services will be made available directly from producers to consumers at very reasonable prices by elimunating the role of middlemen.
(a) Name and explain the form of organisation which Ganga Dhar has decided to opt for his business.
(b) Explain briefly any four merits of such type of organisation.
(a) Ganga Dhar has decided to run his business as a cooperative society.
Definition of cooperative society: According to the Indian cooperative societies Act 1912 "a society which has its objectives for the promotion of the economic interest of its members in accordance with cooperative principles."
(b) Merits :
1. Equality in voting status: The principle of one man one vote governs the cooperative society.
2. Limited liability: The liability of members of a cooperative society is limited.
3. Stable existence: Death, bankruptcy or insanity of the members do not affect continuity of a cooperative society.
4. Economy in operations: The members generally offer honorary service to the society.
(a) Ganga Dhar has decided to run his business as a cooperative society.
Definition of cooperative society: According to the Indian cooperative societies Act 1912 "a society which has its objectives for the promotion of the economic interest of its members in accordance with cooperative principles."
(b) Merits :
1. Equality in voting status: The principle of one man one vote governs the cooperative society.
2. Limited liability: The liability of members of a cooperative society is limited.
3. Stable existence: Death, bankruptcy or insanity of the members do not affect continuity of a cooperative society.
4. Economy in operations: The members generally offer honorary service to the society.
