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Limitations of Co–operative Society Besides the above advantages, the co-operative form of business organisation also suffers from various limitations. Ø Limited Capital: The amount of capital that a cooperative society can raise from its member is very limited because the membership is generally confined to a particular section of the society.

Again due to low rate of return the members do not invest more capital.

Advantages and Disadvantages of Co-operative Society Advantages of Co-operative Society A Co-operative form of business organisation has the following advantages: Ø Easy Formation: Formation of a co-operative society is very easy compared to a joint stock company.

Any ten adults can voluntarily form an association and get it registered with the Registrar of Co-operative Societies.

Ø Stable Life: A co-operative society has a fairly stable life and it continues to exist for a long period of time.

Its existence is not affected by the death, insolvency, lunacy or resignation of any of its members.

The members or their elected representatives are not experienced enough to manage the society.

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[img]https:// Tend not to buy large quantities of any red wine you prefer.Ø Democratic Control: A co-operative society is controlled in a democratic manner.



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