3. 4. A cooperative society is different from other forms of business organization because other business organizations like partnership firm or private limited companies work with the sole objective of earning profits whereas in this form of business organization member’s voluntary join the society so to work for the benefit of the members of the society while doing business. Advantages And Disadvantages Of Cooperatives 702 Words 3 Pages The world has become more and more exclusive as the disparity between the haves and have-nots in our society widened. Limited liability: The liability the members is mostly limited to the value of the share held by them. 9. Advantages of a Cooperative. Following are some of the advantages of cooperative societies: 1. 1. Advantages and Disadvantages of Cooperative Societies. Disadvantages of a Cooperative Organization: 1. Right now, one of the surest routes to owning a home in Nigeria is to go the cooperative society way. In addition, it enjoys the following advantages also. State Co-Operative Bank:-These are the main co-operative banks in an every states and provide finance to the all central co-operative … … A cooperative organization entails longer decision-making process. 19 Top Advantages and Disadvantages of a Cooperative. 2. Social benefit: It helps in social welfare as it caters to the needs of the poor and middle sections of the society. It promotes saving habit, self-help and other moral values in the society. Central Co-Operative Bank:-This banks are operate in district level and provide a financial services and control the primary co-operative societies of a district. Merits of Co-operative Societies. Advantages of Cooperative Society. Advantages of Co-operative Society 1. Marketing Cooperative Society: These societies are formed with the objective of providing small producers a platform to sell their products at affordable prices and also eliminate middlemen from the chain, thus ensuring adequate profits. Ans: Given below are the types of cooperative societies: Consumer Cooperative Society: Its purpose is to purchase goods directly from the manufacturer and deliver it to the consumers at a reasonable price. Housing Cooperative Society: This committee is formed to help the members who need lands and houses. Less Taxation. 5. 3. The procedure involves in the registration of a cooperative society is very simple and easy.… Therefore, members of a cooperative are only taxed once on their income from the cooperative and not on both the individual and the cooperative level. Disadvantages of cooperative society: Disadvantages Similar to an LLC, cooperatives that are incorporated normally are not taxed on surplus earnings (or patronage dividends) refunded to members. Any ten adults can join together and form a co-operative society. Co-operative societies enjoy the benefit of certain preferences being shown towards them by tax authorities. It thus helps in raising the standard of living of the members. 2. It requires members to participate for success. It has less incentive, and there’s also a possibility of development of conflict between members. The system of owning a house through a housing cooperative society in Nigeria has its own perks and advantages on a good day, but it also has its disadvantages. Merits of Cooperative Society. Being a body corporate, the co-operative society gets all the advantages and benefits, which are derived by companies. 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