Q.How does a co-operative society differ from the other forms of business organisation? Explain.

The sole proprietorship, partnership and company all exist to earn profit and are controlled by capital; the co-operative society stands apart from all of them.

The other three forms — sole proprietorship, partnership and joint stock company — are all profit-seeking and are ultimately controlled by ownership of capital. The co-operative society, though it may resemble a company in having limited liability, a separate legal status and perpetual succession, differs fundamentally on the following points:

1. Motive — its aim is service and mutual help, guided by 'Each for all and all for each', whereas the others aim at maximum profit for their owners.
2. Basis of control — it works on 'one member, one vote', so control rests with people, not with capital. In a company, votes go with shares; in a proprietorship or partnership, control follows ownership.
3. Membership — it has open, voluntary and non-discriminatory membership and specially serves the weaker and poorer sections of society; the other forms admit owners on the basis of investment.
4. Distribution of surplus — surplus is returned mainly as a bonus in proportion to a member's dealings with the society and only a limited dividend on capital, unlike the profit-in-proportion-to-ownership of the other forms. …

Answering only 'it works for service' is too thin for this question — you must bring out the differences point-by-point (motive, control, membership, surplus, values). Avoid claiming the co …