Note on Co-operative Organization

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Introduction of Co-Operative Organization

A co- operative organization is the form of organization which is established by the people of weaker society to uplift their social and economic condition. It is formed with the idea of living together and working together. It is a voluntary association of people who join together for carrying on a business with the principles of equality and mutual help. It is a democratic organization which is operated for the service of its members. It works with the motto of each shall work for all and all for each. A cooperative organization prefers services instead of profit maximization, joint actions instead of cut- throat competition, self help and self reliance instead of undue and unwanted dependence, development of morality of members instead of emphasis on earning money. Co-operative started in Nepal in 2010 B.S. The co-operative department was established that year with a view to developing cooperative through people's participation and mobilization. While this department was attempting to closely study the activities carried out in the cooperative sector in different parts of the world, the people of Nepal had to face the devastation of floods in 2011 B.S. The following are the main definitions of a co- operate organization:

"A co- operate is a form of organization, where persons, irrespective of caste, caste and religion, voluntary associate together, as human beings, on the basis of equality for the promotion of their common economic interests. - Sherlekar

"A co- operative is an association of the weak who gather for a common economic need and try to lift themselves from a weakness into strength through business organization." -Talmaki

" A co-operative is an organization wherein person voluntarily associate together as human beings on the basis of equality for the promotion of the economic interest of themselves." -Prof. E.H Calvert

Characteristics:

The following are the main characteristics of a co- operative organization are:

  1. Open membership: In a co- operative, membership is open to all adults without any distinction of caste, color or creed, and religion. A person can join the society by contributing a small amount in the shares of the co- operative.
  2. Democratic management: A co- operative organization is democratic. It is managed by a management committee or a board of directors. The members of the management committee or board of directors are elected in annual general meeting by the members on the principles of one- member one- vote.
  3. Limited liability: In a co- operative organization, the liability of the members is limited up to their invested amount. The members are not required to clear the debts of the co- operative out of their private properties.
  4. Service motive: In a co- operative organization, service is the primary objective. It works for providing services to its members instead of maximizing profit. It provides qualitative goods and services to its members at a minimum cost.
  5. Separate legal existence: A co- operative organization, has a co-operate status which is established under the Co- operative Act, 2048. It performs all transactions and makes contracts in its own name. Due to its separate legal status, it has a permanent life.
  6. Cash transactions: In a co- operative organization, cash, and carry is the basic system. It sells goods and services to its members and outsiders on a cash basis only. Due to the cash transaction system, it performs its business successfully even with a limited capital.

Types of Co- operate Organizations:

  1. Consumers co- operative: A consumers' co- operative is established for selling consumer goods to its members and outsider. It buys qualitative goods in bulk from a producer or wholesaler and sells them to its members at a reasonable price. Its objective is to avoid the cost and profit of the middleman by establishing a direct link with the producers.
  1. Producer's co- operative: A producers' co- operative is established by small-scale procedures for supplying raw materials, tools, equipment and other items of production to its members. It buys qualitative raw materials, tools, equipment and other items of production in large quantity and sells them to its producer members at a reasonable price.
  2. Multipurpose co- operative: A multipurpose co- operative is established by the people of a lower income class who require different services in the field of finance, production, marketing, housing, health, and education. Such co- operative performs various functions are not limited to a specific area, it is known as a multi-purpose co- operative.
  3. Marketing co- operative: A marketing co- operative is established by farmers and small-scale producers for selling their products at a fair price. It stores agriculture products in its go- down and provides a loan to the farmers against the deposit of their products. Marketing Co-operatives also provide the facilities of transportation, warehousing, processing and packing to its members.
  4. Miscellaneous co- operatives: Besides the co- operative mentioned above, other types of co- operatives can also established for performing different functions for the service of their members. Co- operative farming, co- operative poultry farming, dairy co- operatives and retailer's co- operatives are some examples of miscellaneous co- operatives.

  • A co- operative organization is the form of organization which is established by the people of weaker society to uplift their social and economic condition.
  • A co- operative organization works with the motto of each shall work for all and all for each.
  • The characteristics of co- operative organization are open membership, democratic management, Limited liability, service motive, separate legal existence and cash transactions.
  • Consumers' co-operative, producers' co-operative, miscellaneous co-operative, multipurpose co-operative and marketing co-operative are the types of co-operative organization.
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Very Short Questions

The following are the main characteristics of a co- operative organization are:

  1. Open membership: In a co- operative, membership is open to all adults without any distinction of caste, color or creed and religion. A person can join the society by contributing a small amount in the shares of the co- operative.
  2. Democratic management: A co- operative organization is democratic. It is managed by a management committee or a board of directors. The members of the management committee or board of directors are elected in annual general meeting by the members on the principles of one- member one- vote.
  3. Limited liability: In a co- operative organization, the liability of the members is limited up to their invested amount. The members are not required to clear the debts of the co- operative out of their private properties.
  4. Service motive: In a co- operative organization, service is the primary objective. It works for providing services to its members instead of maximizing profit. It provides qualitative goods and services to its members at a minimum cost.
  5. Separate legal existence: A co- operative organization, has a co-operate status which is established under the Co- operative Act, 2048. It performs all transactions and makes contracts in its own name. Due to its separate legal status, it has a permanent life.
  6. Cash transactions: In a co- operative organization, cash, and carry is the basic system. It sells goods and services to its members and outsiders on a cash basis only. Due to the cash transaction system, it performs its business successfully even with a limited capital.

The following are the types of co-operatives:

  1. Consumers' co- operative: A consumers' co- operative is established for selling consumer goods to its members and outsider. It buys qualitative goods in bulk from a producer or wholesaler and sells them to its members at a reasonable price. Its objective is to avoid the cost and profit of the middleman by establishing a direct link with the producers.
  1. Producers' co- operative: A producers' co- operative is established by small scale procedures for supplying raw materials, tools, equipment and other items of production to its members. It buys qualitative raw materials, tools, equipment and other items of production in large quantity and sells them to its producer members at a reasonable price.
  2. Miscellaneous co- operatives: Besides the co- operative mentioned above, other types of co- operatives can also established for performing different functions for the service of their members. Co- operative farming, co- operative poultry farming, dairy co- operatives and retailer's co- operatives are some examples of miscellaneous co- operatives.
  3. Multipurpose co- operative: A multipurpose co- operative is established by the people of a lower income class who require different services in the field of finance, production, marketing, housing, health, and education. Such co- operative performs various functions are not limited to a specific area, it is known as a multi-purpose co- operative.
  4. Marketing co- operative: A marketing co- operative is established by farmers and small scale producers for selling their products at a fair price. It stores agriculture products in its go- down and provides a loan to the farmers against the deposit of their products. Marketing Co-operatives also provide the facilities of transportation, warehousing, processing and packing to its members.

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  • ______ is the form of organization which is established by the people of weaker of the society to uplift their social and economic condition.

    A multi-national company


    Public enterprises


    A joint stock company


    A co- operative organization


  • "A co- operate is a form of organization, where persons, irrespective of caste, caste and religion, voluntary associate together, as human beings, on the basis of equality for the promotion of their common economic interests." Who gave this definition?

    James Thompson


    Talmaki


    L.H. Haney


    Sherlekar


  • Co-operative was started in Nepal in ______.

    1999 BS


    2002 BS


    2012 BS


    2010 BS


  • "A co- operative is an association of the weak who gather for a common economic need and try to lift themselves from a weakness into strength through business organization." Who gave this definition?

    Sherlerkar


    M.N. Mishra


    Talmaki


    S.P. Arora


  • Co-operative was started in Nepal in ______.

    1999 BS


    2002 BS


    2010 BS


    2012 BS


  • " A co-operative is an organization wherein person voluntarily associate together as human beings on the basis of equality for the promotion of the economic interest of themselves." Who gave this definition?

    L.H. Haney


    Prof. E.H Calvert


    Talmaki


    Sherlekar


  • ______ is established for selling consumer goods to its members and outsider.

    A producers' co- operative


    A marketing co- operative


    A multipurpose co- operative


    A consumers' co- operative


  • ______ is established by small scale procedures for supplying raw materials, tools, equipment and other items of production to its members.

    A producers' co- operative


    A multipurpose co- operative


    A consumers' co- operative


    A marketing co- operative


  • ______ is established by farmers and small scale producers for selling their products at a fair price.

    A consumers' co- operative


    A multipurpose co- operative


    A producers' co- operative


    A marketing co- operative


  • ______ is established by the people of a lower income class who require different services in the field of finance, production, marketing, housing, health, and education.

    A multipurpose co- operative


    A marketing co- operative


    A producers' co- operative


    A consumers' co- operative


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