Tag: meaning and features of cooperative society

Questions Related to meaning and features of cooperative society

Voting right that vests with each member of cooperative society is ________________.

organization of commerce and management ownership structures - cooperative society features, merits and demerits, formation and management of a cooperative society meaning and features of cooperative society cooperative organisation

  1. one member one vote

  2. right to vote in proportion of capital contributed

  3. right to vote as mentioned in memorandum

  4. none of the above

Show answer
Correct Option: A
Explanation:

The principle of 'One person one vote' applies here and therefore every member can exercise the right to cast to vote.The number of shares purchase has n relevance with the right to vote.

Why co-operative marketing society is formed?

organization of commerce and management ownership structures - cooperative society features, merits and demerits, formation and management of a cooperative society meaning and features of cooperative society cooperative organisation

  1. To protect the interest of general consumers

  2. To sell the product of small farmers and producers

  3. To protect the interest of small producers

  4. To provide financial support to the members

Show answer
Correct Option: B
Explanation:

According to RBI Co-operative Marketing is a co-operative association of cultivators formed primarily for the purpose of helping members to market their produce more profitably.

Which form of business organisation has a separate legal entity ?

organization of commerce and management ownership structures - cooperative society features, merits and demerits, formation and management of a cooperative society meaning and features of cooperative society cooperative organisation

  1. Hindu Undivided Family (HUF)

  2. Co-operative society

  3. Partnership firm

  4. Sole proprietorship

Show answer
Correct Option: B
Explanation:

After registration a co-operative enterprise becomes a body corporate independent of its members i.e. a separate legal entity. Registration of a co-operative enterprise is compulsory. A co-operative society may be registered with the Registrar of Co-operatives Societies.

Which of the following sentence in relation to "Cooperative Societies" are correct?
(1)  There should be minimum of 20 members to 
       for cooperative society but there is no 
       maximum limit for the membership.
(2)  According to Indian Cooperative Societies 
       Act, 1912, each society must transfer at
       least one-third of its profits to general
       reserve.
(3)  Cooperative Societies may distribute
       maximum up to 90 per cent of its surplus 
       as dividend to its members and can spent
       another 10 per cent for the welfare of the 
       members.   

organization of commerce and management ownership structures - cooperative society features, merits and demerits, formation and management of a cooperative society meaning and features of cooperative society cooperative organisation

  1. (1) only

  2. (1) & (2) only

  3. (3) only

  4. (2) & (3) only

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Correct Option: C

What is the minimum number of members required to form a co-operative society?

organization of commerce and management ownership structures - cooperative society features, merits and demerits, formation and management of a cooperative society meaning and features of cooperative society cooperative organisation

  1. $5$

  2. $7$

  3. $10$

  4. $15$

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Correct Option: C

The main objective of the co-operative society are ________.

organization of commerce and management ownership structures - cooperative society features, merits and demerits, formation and management of a cooperative society meaning and features of cooperative society cooperative organisation

  1. rendering service rather than earning profit

  2. mutual help instead of competition

  3. self help in place of dependence

  4. all of the above

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Correct Option: D

Which form of business organisation has a separate legal entity?

organization of commerce and management ownership structures - cooperative society features, merits and demerits, formation and management of a cooperative society meaning and features of cooperative society cooperative organisation

  1. Hindu Undivided Family (HUF)

  2. Co-operative society

  3. Partnership firm

  4. Sole proprietorship

Show answer
Correct Option: B

A co-operative society can promise maximum _________ amount of interest on the money contributed by its members.

organization of commerce and management ownership structures - cooperative society features, merits and demerits, formation and management of a cooperative society meaning and features of cooperative society cooperative organisation

  1. $9\%$

  2. $6\%$

  3. $5\%$

  4. unlimited rate of interest

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Correct Option: A

Invariable _________ is the disadvantage of co-operative society.

organization of commerce and management ownership structures - cooperative society features, merits and demerits, formation and management of a cooperative society meaning and features of cooperative society cooperative organisation

  1. business secrecy

  2. low prices

  3. limited liability

  4. open membership

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Correct Option: A

Match the following:

List I List II
P. Consumers co-operative societies $1.$ Formed by small producers and manufacturers who find it difficult to sell their products individually.
Q. Producers co-operative societies $2.$ Formed to provide financial support to the members.
R. Co-operative marketing societies $3.$ Formed to protect the interest of small producers by making available items of their need for production like raw materials, tools and equipments, machinery, etc.
S. Co-operative credit societies $4.$ Formed by small farmers to work jointly and thereby enjoy the benefits of large-scale farming.
$5.$ Formed to protect the interest of general consumers by making consumer goods available at a reasonable price.

Select the correct answer from the options given below.

organization of commerce and management ownership structures - cooperative society features, merits and demerits, formation and management of a cooperative society meaning and features of cooperative society cooperative organisation

  1. $P - 5, Q - 3, R - 2, S - 1$

  2. $P - 5, Q - 3, R - 1, S - 2$

  3. $P - 4, Q - 2, R - 1, S - 3$

  4. $P - 3, Q - 5, R - 2, S - 1$

Show answer
Correct Option: B
Explanation:

A Co-operative Society is an artificial voluntary association of people who work together to promote their economic interest and in order to achieve common goals. 

1. Consumer co-operative societies- It is an artificial voluntary association of people who work together to protect the interest of general consumers by making consumer goods available at a reasonable rate in the market.

2. Producers co-operative societies- It is an artificial voluntary association of people who work together to protect the interest of small producers by making available all the materials, tools and equipment needed for production at a reasonable rate. 

3. Co-operative marketing societies- It is an artificial voluntary association of small producers and manufactures who work together to market their product together in order to achieve the target market. 

4. Co-operative credit societies - It is an artificial voluntary association of people who work together to provide financial support inclusion to its member.