Tag: meaning and features of cooperative society

Questions Related to meaning and features of cooperative society

Which of the following is a voluntary association of persons who work together to promote their economic interest?

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. Sole proprietorship

  2. Company

  3. Co-partnership

  4. Co-operative

Show answer
Correct Option: D
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. 

These society are incorporated with some social motives and they often have separate legal body and common seal.

The main objective(s) of co-operative society is/ 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. Earning profit

  2. Competition with private sectors enterprises instead of mutual help

  3. Self help in place of dependence

  4. All of above

Show answer
Correct Option: C
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. These society are incorporated with some social motives and they often have separate legal body and common seal. The main objective of such a society is to self help each other by using the resources gathered by the society and do not depend on anyone. 

Handloom societies like APPCO, Bayanka, Haryana Handloom, etc., are examples of ____________________.

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. Producers' co-operative societies

  2. Co-operative marketing societies

  3. Co-operative credit societies

  4. Consumers' co-operative societies

Show answer
Correct Option: A
Explanation:

Producers co-operative societies 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. For example- APPCO, Bayanka, Haryana handloom. 

Which of the following is example of producers' 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. Haryana handloom

  2. Gujarat co-operative milk marketing federation

  3. Apna Bazar

  4. Urban Cooperative Banks

Show answer
Correct Option: A
Explanation:

Producers co-operative societies 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. For example- Haryana handloom.

Village Service Co-operative Society and Urban Cooperative Banks are examples of _____________________.

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. Producers' co-operative societies

  2. Co-operative marketing societies

  3. Co-operative credit societiesq

  4. Consumers' co-operative societies

Show answer
Correct Option: C
Explanation:

Co-operative credit societies is an artificial voluntary association of people who work together to provide financial support inclusion to its member. For example- Village Service Co-operative Society and Urban Cooperative Banks. 

The income of cooperative society is legally ________ as per the Income - tax Act, $1961$.

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. Not taxable

  2. Taxable

  3. Totally exempt

  4. Taxable is State Government pass order

Show answer
Correct Option: B
Explanation:

As per Income Tax Act, 1961 the income earned by any type of co-operative society is taxable with certain mentioned rates differ from organisation to organisation. 

According to Indian Co-operative Societies Act, $1912$, may distribute maximum up to ______ of its surplus as dividend to 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. $100$ per cent

  2. $90$ per cent

  3. $50$ per cent

  4. $25$ per cent

Show answer
Correct Option: B
Explanation:
According to Indian Cooperative Societies Act, 1912, the cooperative society can distribute maximum up to 90 percent of its overall surplus to its members in the form of dividend. 

Which of the following can be treated as characteristic 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. Voluntary association

  2. Separate legal entity

  3. Democratic management

  4. All of above

Show answer
Correct Option: D
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. 

These society are incorporated with some social motives and they often have separate legal body and common seal. Even, all the members of a co-operative society can perform democratically in management.

The advantages of co-operative society is/ 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. It is very expensive and difficult to form co-operative society as compared to a joint stock company

  2. The co-operative societies work on the principle of open membership

  3. "One share one vote" is the rule and thus members having maximum share can dominate the management

  4. All of above

Show answer
Correct Option: B
Explanation:

The biggest advantage of cooperative society is that it works upon the principle of open membership to all. Therefore, no member can detect the terms and conditions of the society and all the terms and conditions are selected democratically with one man approved of one vote.

Statement $1$:
The liability of members of co-operative society remains limited to the extent of capital contributed by them.
Statement $2$:
The members of co-operative society are personally liable of co-operative society.
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. Both $1$ and $2$ are true

  2. $2$ is true but $1$ is false

  3. $1$ is true but $2$ is false

  4. Both $1$ and $2$ are false

Show answer
Correct Option: C
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. The liability of the members of the cooperative societies are limited to the extent of their capital contribution in the society and in case of any insolvency no creditors can claim the personal assets of its members.