TN State Board 11th Commerce Important Questions Chapter 7 Cooperative Organisation
Question 1.
What do vou mean by cooperative organization?
Answer:
A cooperative is a private business organisation that is owned and controlled by the people who use its products, supplies or services. Although cooperatives vary in type and membership size, all were formed to meet the specific objectives of members, and are structured to adapt to member’s changing needs.
Question 2.
Define cooperatives.
Answer:
Cooperation is a form of organization in which persons voluntarily associate together as human beings on the basis of equality for the promotion of the economic interests of themselves. Cooperation is “better farming, better business and better living”. – Sir Horace Plunkett
Question 3.
What is Credit cooperatives?
Answer:
Cooperative credit societies are those formed for the purpose of providing short-term financial help to their members. Agriculturists, artisans, industrial workers, salaried employees, etc., form these credit societies.
Question 4.
Is low taxes possible in Cooperative society?
Answer:
Yes. The low taxes possible in co-operative society are to promote the co-operative movement and also because of the fact that it is a non-profit enterprise, government provides various exemptions and tax concessions.
Question 5.
Who are Rochdale Pioneers?
Answer:
At first, the cooperative movement was started by Robert Owen, in the year 1844. He formed a consumer’s cooperative society in England with 28 workers as members, called “Rochdale Society of Equitable Pioneers”.
[OR]
Robert own started the first ever co-operative movement in the year 1844 with 28 members called as Rochdale society of equitable pioneers, it was a consumer’s co-operative society.
Question 6.
What are the disadvantages of Co-operatives ?
Answer:
(i) Limited funds:
Co-operative societies have limited membership and are promoted by the weaker sections. The membership fees collected is low. Therefore the funds available with the co-operatives are limited.
(ii)Over reliance on Government funds:
Co-operative societies are not able to raise their own resources. Their sources of financing are limited and they depend on government funds.
(iii) Imposed by Government:
In the Western countries, co-operative societies were voluntarily started by the weaker sections. The objective is to improve their economic status and protect themselves from exploitation by businessmen. But in India, the co-operative movement was initiated and established by the government. Wide participation of people is lacking. Therefore the benefit of the co-operatives has still not reached many poorer sections.
Question 7.
Write a note on Housing cooperatives.
Answer:
Every person likes to have his own house. So people who would like to have own houses and do not have sufficient money may start a co-operative house building society. These societies will advance loans to members for the construction of houses. The loan amount is to be repaid in easy installments.
Question 8.
What is meant by Producers cooperative society?
Answer:
Producer cooperatives are established and operated by producers. Producers can decide to work together or as separate entities to help increase marketing possibilities and production efficiency. They are organized to process, market, and distribute their own products. This helps lessen costs and strains in each area with a mutual benefit to each producer.
eg: Cooperative weavers’ societies, Cooperative carpenting units, Cooperative match factories.
Question 9.
Write a note on cooperative forming societies.
Answer:
Co-operative farming are organised by landowners and agriculturists. The main aim is to secure the advantage of large scale farming and produce maximum produce with the lowest cost. These societies would solve the problems of agriculture like poor yield.
Question 10.
Write a note on industrial cooperatives.
Answer:
An industrial co-operatives are organized by small scale producers. Co-operative under takings are a useful means of developing small scale and cottage industries. Industrial co-operatives are very useful in obtaining raw materials in improving the quality of products.
Question 11.
What are the principles of cooperatives?
Answer:
(i) Voluntary and Open Membership:
Cooperatives are voluntary organizations, open to all people able to use its services and willing to accept the responsibilities of membership, without gender, social, racial, political or religious discrimination.
(ii) Democratic Member Control:
Cooperatives are democratic organizations controlled by their members – those who buy the goods or use the services of the cooperative – who actively participate in setting policies and making decisions.
(iii) Member’s Economic Participation:
Members contribute equally to, and democratically control, the capital of the cooperative. This benefits members in proportion to the business they conduct with the cooperative rather than on the capital invested.
(iv) Autonomy and Independence:
Cooperatives are autonomous, self-help organizations controlled by their members. If the co-operative organisation enters into agreements with other organizations or raises capital from external sources, it is done so based on terms that ensure democratic control by the members and maintains the cooperative’s autonomy.
(v) Education, Training, and information:
Co-operatives provide education and training for members, elected representatives, managers and employees so they can contribute effectively to the development of their cooperative. Members also inform the general public about the nature and benefits of cooperatives.
Question 12.
What are the advantages of co-operative society?
Answer:
(i) Voluntary organization:
The membership of a co-operative society is open to all. Any person with common interest can become a member. The membership fee is kept low so that everyone would be able to join and benefit from cooperative societies.
(ii) Easy formation:
Co-operatives can be formed much easily when compared to a company. Any 25 members who have attained majority can join together for forming a cooperative society by observing simple legal formalities.
(iii) Democracy:
A co-operative society is run on the principle of ‘one man one vote’. It implies that all members have equal rights in managing the affairs of the enterprise. Members with money power cannot dominate the management by buying majority shares.
(iv) Equal distribution of surplus:
The surplus generated by the co-operative societies is distributed in an equitable manner among members. Therefore all the members of the co-operative society are benefited. Further the society is also benefited because a sum not exceeding 10 per cent of the surplus can be utilized for promoting the welfare of the locality in which the cooperative is located.
(v) Limited liability:
The liability of the members in a co-operative society is limited to the extent of their capital contribution. They cannot be personally held liable for the debts of the society.
Question 13.
What are the types of Cooperative society?
Answer:
(i) Consumers Cooperatives:
Consumer cooperatives are organized by consumers that want to achieve better prices or quality in the goods or services they purchase. In contrast to traditional retail stores or service providers, a consumer cooperative exists to deliver goods or services rather than to maximize profit from selling those goods or services, They also supply essential commodities through Public Distribution System (PDS).
(ii) Producers Cooperatives:
Producer cooperatives are established and operated by producers. Producers can decide to work together or as separate entities to help increase marketing possibilities and production efficiency. They are organized to process, market, and distribute their own products.
eg: Cooperative weavers’ societies.
(iii) Marketing Cooperatives:
Cooperative marketing societies are associations of small producers formed for the purpose of marketing their produce. The marketing cooperatives perform certain marketing functions such as grading, warehousing, advertising etc., They secure better prices for their members by transporting goods even to distant markets.
(iv) Credit Cooperatives:
Cooperative credit societies are those formed for the purpose of providing short-term financial help to their members. Agriculturists, artisans, industrial workers, salaried employees, etc., form these credit societies.
Question 14.
Write a note on Consumer cooperative society.
Answer:
Consumer cooperatives are organized by consumers that want to achieve better prices or quality in the goods or services they purchase. In contrast to traditional retail stores or service providers, a consumer cooperative exists to deliver goods or services rather than to maximize profit from selling those goods or services. They also supply essential commodities through Public Distribution System (PDS).
Nationally, the most widely used cooperative form is the credit union, with some 90 million members. Credit union assets have grown a hundred¬fold in three decades. Credit unions are essentially cooperatives of people that use banking services. Students’ cooperative stores, Cooperative provision stores and supermarkets set up on cooperative societies of India are examples of this type.
Question 15.
Whether misuse of funds is possible in co-operatives.
Answer:
If the members of the managing committee are corrupt they can swindle the funds of the co-operative society. Many cooperative societies have faced financial troubles and closed down because of corruption and misuse of funds. Yes, misuse of funds is possible in co-operatives.
Question 16.
A group of mechanical and automobile engineers join hands to set up a Cooperative for assembly of scooters. How can they go about it? What principles would you like them to keep in mind? How can they j augment their financial resources and how should they organise the marketing effort?
Answer:
An Industrial co-operative is organised by small scale producer. This co-operatives are very useful in obtaining spare parts of scooters.
Question 17.
Now a days we all live in High rise flats. These are either constructed by builders or built by group of people as a society. Work in groups and collect information regarding any two cooperative housing societies in your neighbourhood.
Answer:
Co-operative community hall, Madipakkam. These types of co-operative giving loans for construction of buildings.
Question 18.
List out any 2 Co-operative institutions.
Answer:
- Amul
- Indian farmers fertilizers co-operative Limited.
- Mothers diary
- Dairy farmers
- National rural utilities co-operative finance corporation.
Question 19.
Name any 2 district level cooperative organisations.
Answer:
- TamilNadu co-operative marketing Federation Limited.
- TamilNadu state co-operative society.
Question 20.
Mention any 3 village level primary cooperatives in your area?
Answer:
- Co-operative Marketing societies.
- Co-operative fanning societies.
- Housing co-operatives.
Question 21.
Chandru, a trade union activist, lives in a Workers’ colony in the city of Chennai. He is a devoted leader for the cause of workers’ welfare. For the last many months he has been observing that the local vendors of commodities of daily use have been making huge profits by charging high process from workers. He cannot tolerate all this and thinks of the idea of opening a consumers’ cooperative store in the colony.
He calls a few elderly workers of the locality, tells them about their exploitation by merchants and discusses with them all his plans to solve the problem. Merchants and discusses with them all his plans to solve the problem. While some of the workers welcome the scheme. Others express their genuine doubts about its feasibility and success. Take the roles of these workers and list out the possible arguments among them.
Answer:
Chandra a trade union activist to Start consumer co-operative society to buy quality goods. They also supply essential commodities through public distribution system.
(i) Students co-operative stores.
(ii) Co-operative provision stores.
(iii) Supermarket.
So, Chandru think we want to buy quality goods with fair price to open consumer co-operatives. Financial resources collected from members.
Choose the Correct Answer:
Question 1.
Membership in a cooperative organization is:
(a) not open to all
(b) selective
(c) open to all
(d) none of them
Answer:
(c) open to all
Question 2.
Cooperative fails because of:
(a) unlimited membership
(b) cash trading
(c) mismanagement
(d) loss-making
Answer:
(c) mismanagement
Question 3.
All cooperatives are established with:
(a) philanthropic motive
(b) service motive
(c) profit motive
(d) reform motive
Answer:
(b) service motive
Question 4.
Consumers Co-operation was first successful in:
(a) England
(b) USA
(c) Swiss
(d) India
Answer:
(a) England
Question 5.
Rochdale society of equitable pioneers was started by:
(a) Robert owen
(b) H.C.Calvert
(c) Talmaki
(d) Lambert
Answer:
(a) Robert owen
Samacheer Kalvi 11th Commerce Notes Chapter 7 Cooperative Organisation
→ Individualistic institutions like sole tradership, partnership and joint stock companies. All these business organisations are profit oriented. The shares are in their control. Their profit is distributed in the ratio of capital invested co-operative society is: just the opposite of these in which members, in order to achieve a common economic objective, voluntarily work together co-operative society is a mid-way between capitalism and communism.
→ There are many economically weaker sections in the society. Among them are farmers, craftsman and small traders. These ill fated people are crushed under the clutches of mediators and moneylenders. Their mainaim is to earn profits. The farmers are unable to sell their products at remunerative prices They are facing hardships from middleman and brokers. In these circumstances co-operative enterprises emerged as an instrument to protect the interest of the weaker sections.
→ The philosophy behind this concept is all for each and each for all. The word co-operation derived from the latin word “co-operari” meaning “to work with” so co-operation means working together with others for a common purpose.