Question

"This is an organization where persons voluntarily associate for the promotion of economic interest of its members." Identify the organization and explain its features.

Answer 1

Dear student,
The organisation that is described is cooperative society. The following are its features:

• It has a separate legal entity
• It is a democratic form of organisation, managed and controlled by a managing committee a elected by the members of the society
• The membership of the society is on voluntary basis, unaffected by caste, religion, etc.
• The degree of liability of the members is limited to the extent of the amount of capital contributed by them.
• They serve the objective of social values and welfare.