posted by admin on Oct 26
Co operative societies are democratic form of business organizations, for the betterment of the general public. Co operative society is a voluntary association of individuals who supply capital to run the business and share profits and losses.
The purpose of co operative societies is to distribute products of daily use at a rate lower than that of the market. In this organization, shareholders are the consumers or producers. This type of organization has limited liability. It can be formed with a minimum of ten members. Co operative society is defines as the voluntary association of individuals with limited membership and collectively owned fund, considering of wage earners and small producers, united on a democratic basis for the establishment of enterprises under joint management for the purpose of improving their business economy.
In cooperative societies, the members are industrials workers, daily wage laborers, and small in dependent producers, agriculturalists and consumers. The main of co operative society is to promote self help.
posted by admin on Oct 20
Limited financial resources and heavy burden of risk involved in the previous forms of organizations lead to the formation of joint stock companies. Joint stock companies have limited liability. Joint Stock Company is the voluntary association of individuals to start and run the business. In this type of organization, capital amount required to start the business can be collected from a large number of people. Capital is divided into large number of transferable shares of different values.
The capital is raised by selling shares of different values. People who purchase the shares are called as “shareholders” and the managing body known as “board of directors” is elected by these shareholders. The board of director is responsible for policy making, important financial and technical decision making and efficient working of an enterprise. In this form organization, the liability of the shareholders is limited to the extent of the number of shares held by them. They are free from the responsibility of the company beyond the value of shares. Because of this advantage, all section of people is encouraged to contribute for the company. These shares are transferrable.