One of the most outstanding disadvantages of co-operative societies as business organization is that?
Answer Details
One of the most outstanding disadvantages of co-operative societies as a business organization is that it is poorly financed.
A co-operative society is a type of business organization that is owned and operated by its members for their mutual benefit. Members pool their resources together to establish the business and share the profits and losses equally. However, raising enough capital to start and sustain the business can be a challenge. Unlike other business organizations that can secure funding from investors or financial institutions, co-operative societies rely solely on their members' contributions. This can limit the amount of capital available for investment and expansion.
Furthermore, since co-operative societies operate on a democratic principle where every member has an equal say in decision-making, it can be challenging to make quick and effective decisions that benefit the business. The true spirit of co-operation can also be marred by delegated authority, as some members may use their positions to advance their personal interests, rather than the collective interest of the society.
In summary, while co-operative societies have several advantages, such as promoting unity and self-reliance, their main disadvantage is poor financing, which can limit their growth and success.