Co-operation · Class 12 Commerce
Ch 10Challenges Before Co-operative Sector — Class 12 Co-operation, concept-first.
The co-operative movement in Maharashtra is one of the strongest in the country. From village credit societies and sugar factories to urban banks, housing societies, dairy and marketing societies, co-operatives touch the daily life of millions of people and have played a large part in the state's rural development.
Key concepts
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Political Interference
Political interference is the intrusion of politics and politicians into the working of co-operatives. Because large societies (sugar factories, banks, mills, marketing societies) control money, jobs and members, they be…
Most relevant Q&A
Chapter contents
The NCERT structure, section by section. Open a section to see its questions, then read the concept-first solution.
Overview
The co-operative movement in Maharashtra is one of the strongest in the country. From village credit societies and sugar factories to urban banks, housing societies, dairy and marketing societies, co-…
Meaning of Challenges before the Co-operative Sector
A challenge is a difficulty or problem that stands in the way of achieving a goal and that has to be faced and overcome.
Political Interference
One of the most serious challenges before the co-operative sector, particularly in Maharashtra, is political interference — the intrusion of politics and politicians into the working of co-operative s…
Lack of Professional Management
Modern co-operatives, especially banks, sugar factories and large marketing societies, are complex business organisations that need to be run with the same skill as any private company.
Financial Weakness and Inadequate Capital
A co-operative can serve its members only if it has adequate funds. Financial weakness — shortage of capital and poor financial health — is one of the most common and crippling challenges before the s…
Dormant Members and Lack of Member Awareness and Loyalty
A co-operative belongs to its members and is meant to be run by their active participation. A widespread challenge is that a large part of the membership is dormant (inactive) and that many members la…
Competition, Government Over-regulation and Other Challenges
Besides its internal weaknesses, the co-operative sector faces important external challenges and a few further problems that deserve mention.
Measures to Overcome the Challenges
The challenges before the co-operative sector are serious but not beyond solution. With honest effort by members, managements and the government, co-operatives can overcome their weaknesses and grow s…
Exercises
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- Q1The challenge in which politicians intrude into the management and working of a co-operative society, so that decisions are guided by politi…Free
- Q2Loans advanced by a credit co-operative that borrowers fail to repay on time, which lock up the society's funds, are known as: (a) Reserves…Free
- Q3State whether the following statement is True or False, and justify your answer: 'Being elected to the managing committee of a co-operative…Free
- Q4Explain the challenge of 'political interference' before the co-operative sector.Preview
- Q5Explain the causes of financial weakness in co-operative societies.Preview
- Q6Who are 'dormant members', and how does their presence harm a co-operative society?Preview
- Q7'Some government control over co-operatives is necessary, but excessive control becomes a challenge.' Explain with reference to government o…Preview
- Q8Explain how competition in the modern economy is a challenge before the co-operative sector.Preview
- Q9'A co-operative society cannot survive today merely on goodwill; it must be run with business skill.' Explain with reference to the lack of…Preview
- Q10Suggest any five measures to overcome the challenges before the co-operative sector.Preview
- Q11Distinguish between internal and external challenges before the co-operative sector, with examples of each.Preview
- Q12Explain how member education (the principle of education, training and information) helps overcome several challenges of the co-operative se…Preview