question_answer

There is an organization comprising of 10 members. It has separate legal entity and perpetual succession. In this each member has one voting power irrespective of his contribution in total capital.

(a) Which form of organization it is?

(b) Identify three features of this form of organization from the paragraph given below.

(c) Explain two limitations of this form of organization.

Answer:

Ans.     (a) Cooperative Society.

(b) Features:

(i) Separate Legal entity

(ii) Perpetual Succession

(iii) One member, one vote

(c) Limitations (Any two):

(i) Limited resources

(ii) Inefficiency in management

(iii) Lack of secrecy

(iv) Government control

(v) Difference of opinion