3. 3. 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. Housing Cooperative Society: This committee is formed to help the members who need lands and houses. 19 Top Advantages and Disadvantages of a Cooperative. Easy to form: The formation of a cooperative society is very simple as compared to the formation of any other form of business organisations. 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. Merits of Cooperative 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. Advantages of a Cooperative. It promotes saving habit, self-help and other moral values in the society. Being a body corporate, the co-operative society gets all the advantages and benefits, which are derived by companies. Co-operative societies enjoy the benefit of certain preferences being shown towards them by tax authorities. 4. Disadvantages of cooperative society: It has less incentive, and there’s also a possibility of development of conflict between members. Advantages of Co-operative Society 1. … 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. 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. Any ten adults can join together and form a co-operative society. 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. It requires members to participate for success. 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. Merits of Co-operative Societies. Social benefit: It helps in social welfare as it caters to the needs of the poor and middle sections of the society. Following are some of the advantages of cooperative societies: 1. Extensive record keeping is necessary in this form of organization. It thus helps in raising the standard of living of the members. Advantages of Cooperative Society. 1. 2. 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. Limited liability: The liability the members is mostly limited to the value of the share held by them. Less Taxation. The procedure involves in the registration of a cooperative society is very simple and easy.… 9. 5. State Co-Operative Bank:-These are the main co-operative banks in an every states and provide finance to the all central co-operative … In addition, it enjoys the following advantages also. Disadvantages The cooperative society helps its members in providing employment to the people and supply of goods at a lower price than the market. Cooperatives are private organizations that are controlled and owned by the individuals who use the supplies, services, or products they produce. A cooperative organization entails longer decision-making process. Similar to an LLC, cooperatives that are incorporated normally are not taxed on surplus earnings (or patronage dividends) refunded to members. 2. February 7, 2020 March 5, 2020 by Louise Gaille.