Practice English Speaking&Listening with: Co-operative Society and its type - HSC/SYJC,Class/Std XII/12,CBSE/NCERT Class 11 Business Studies

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What is a Co-operative Society?

A Co-operative Society is a voluntary association of people who come together and invest their

small savings to form the organization. The Co-operative Society is formed for the

mutual benifit.

of all the members.

The members of the co-operative society are people who come together and invest their

small savings to form the organisation which will work towards their common cause

The Co-operative Society is formed with an idea of supporting each other to achieve a common

economic objective.

For example, the farmers may come together and form a co-operative society to work jointly

and take advantage of economies of scale.

When they work together they will have a better bargaining power for buying raw materials.

They will also enjoy a better bargaining power while selling their agricultural output.

Minimum no of members required to start a co-operative society is 10.

However, there is no upper limit to the number of

members that a co-operative society can have Types of Co-operative Societies -

First Consumers cooperative society.

Consumers cooperative society is an organisation which buys goods in bulk either from wholeseller

or from manufacturer and sells those goods to its members in

small quantities and at a very reasonable rate.

So

the members of Consumers cooperative society get goods at a rate which

is cheaper as compared to market rate.

The members are also paid bonus out of the profits made by the consumers cooperative

society.

Credit cooperative societies - Credit Co-operative Societies are financial institutions which

are established with the objective of providing loans to its members at a reasonable rate

of interest.

The main objective of credit co-operative society is to provide financial assistance

to its members when they require.

Credit cooperative societies also create employment opportunities for its members by providing

loans to buy a rickshaw or a taxi.

Such credit cooperative societies can also be found in lot of government companies or

organisations.

The employees of such organisations form employee credit cooperative societies.

The employees are granted loans quickly and without many formalities in such credit cooperative

societies.

The main objective of such credit cooperative societies is to provide financial assistance

to the employees quickly as and when they require.

A certain portion of employees' salary is deducted every month from his salary and is

deposited in such employees cooperative credit societies.

This is how the employees credit cooperative society generates funds to lend to the needy

employees.

Farming cooperative societies- Such societies are formed by the farmers who come together

and pool their land to conduct the agricultural activities jointly.

By conducting the agriculture activities jointly, they can make use of the scientific and modern

methods of cultivation which they probably cannot afford working individually.

Producers cooperative societies- Such societies are formed by the small scale producers.

Such cooperative societies provide their members with raw materials, modern tools and techniques so that

they can compete with bigger producers.

Marketing cooperative societies - The marketing cooperative societies provide marketing assistance

to its members.

The output of the members of marketing cooperative societies is sold centrally through marketing

cooperative societies.

Such societies perform all marketing functions like standardizing, grading, branding, packaging, advertising,

transportation, etc on behalf if its members Housing cooperative societies - Such a co-operative

society is formed by members who come together and buy a piece of land and then develop it

as a residential building.

The flats of the building are then allotted to all the members

The Description of Co-operative Society and its type - HSC/SYJC,Class/Std XII/12,CBSE/NCERT Class 11 Business Studies