Q.State any four limitations (problems) faced by a service co-operative society.

This asks for the honest difficulties a service society faces in practice — pick four clear limitations and state each briefly.

A service co-operative society, useful as it is, faces several genuine limitations in practice. Any four of the following make a full answer:

1. Shortage of capital. Members are mostly small farmers of limited means, so share capital and deposits are small; the society is chronically short of funds and depends heavily on borrowings and government help.
2. Heavy overdues and bad debts. Loan recovery is often poor because repayment depends on an uncertain harvest; mounting overdues weaken the society's finances and its ability to lend afresh.
3. Weak and inexperienced management. The Managing Committee is elected from ordinary village members who may lack the training, accounting skill, and business experience to run the society efficiently.
4. Small size and limited area. Membership is confined to one village or a small locality, keeping operations small, costs relatively high, and economies of scale out of reach.
5. Over-dependence on government. Heavy reliance on government finance and concessions can breed dependence and dull the self-reliance the co-operative movement is meant to foster. …

Students sometimes only praise the society and struggle to state its problems. Learn the limitations as a definite list (capital, overdues, management, size, government depend …