Business Studies: Types of Cooperative Societies and Companies

Jul 10, 2024

Day 16 of 100 Days Commerce Pro Series

Chapter 2 of Business Studies

Cooperative Societies

  • Definition: Group of 10 adult members forming a cooperative society to save money and conduct small business.
  • Types of Cooperative Societies:
    • Consumer Cooperative Societies: Members are consumers who purchase goods in bulk to save money.
    • Producer Cooperative Societies: Members are producers who sell products in bulk to increase margins.
    • Marketing Cooperative Societies: Helps in marketing goods collectively for better reach and sales.
    • Credit Cooperative Societies: Provides loans to members at reasonable interest rates.
    • Farmers Cooperative Societies: Farmers join to get better inputs like fertilizers, insecticides at reasonable prices.
    • Housing Cooperative Societies: Provides plots or houses in installments with low-interest loans.

Last Form of Business Organization: Company

  • Types of Companies:

    • Private Companies: Owned and controlled by private individuals with no public shareholding.
    • Public Companies: Can raise funds from the public by issuing shares.
    • One Person Company (OPC): Owned and managed by a single individual.

  • Features of a Company:

    • Artificial Person: Separate legal entity with its identity.
    • Perpetual Succession: Continuity despite changes in membership.
    • Common Seal: Company’s signature for authorizing documents.
    • Limited Liability: Shareholders' liability limited to their share contribution.

Comparison of Private and Public Companies

  • Members:
    • Private: 2 to 200 members
    • Public: Minimum 7, no maximum limit
  • Directors:
    • Private: Minimum 2
    • Public: Minimum 3
  • Transfer of Shares: Only possible in public companies.
  • Invitation to Public: Allowed only for public companies.

Features of One Person Company (OPC)

  • Owned by one individual.
  • Provides separate legal recognition and limited liability.
  • Flexible management and higher trust compared to sole proprietorship.

Conclusion

Finished discussing various forms of business organizations such as cooperative societies and companies. Announced the start of Chapter 3 in the next session focusing on new concepts in Business Studies.

Study Recommendations:

  • Open your respective textbooks to mark important topics.
  • Understand different types of cooperative societies and their uses.
  • Know the structure and benefits of forming different types of companies.