Exercises · Q11
Q.Distinguish between a consumers co-operative society and a joint-stock company (trading concern) on any four points.
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Start your 14-day free trial to unlock the full solution →Both a consumers co-operative society and a trading joint-stock company sell goods, but they rest on opposite principles. They can be distinguished on several points:
| Basis | Consumers Co-operative Society | Joint-Stock Company (trading) |
|---|---|---|
| Motive | Service to members — fair prices and honest goods | Maximum profit for shareholders |
| Voting | 'One member, one vote', regardless of shares held | Votes in proportion to shares held |
| Membership | Open and voluntary to any consumer | Restricted by the shares one can buy |
| Who it serves | Its own members (the buyers own the shop) | The general public, to earn profit from them |
| Distribution of surplus | Mainly as a patronage bonus in proportion to purchases, plus a limited dividend | As dividend on shares in proportion to shareholding |
| Regulating law | Co-operative Societies Act (in Maharashtra, the Act of 1960) | Companies Act |
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