Key Features and Principles of Cooperative Society
A cooperative society is an organization owned and managed by its members to achieve shared economic, social, or cultural needs. MCQs on cooperative society are frequently included in commerce exams, helping students prepare for class 11, class 12 board, and competitive exams. This topic strengthens understanding of business structures, legal aspects, and real-world applications.
| Type of Cooperative Society | Main Purpose | Example |
|---|---|---|
| Consumer Cooperative Society | Supply goods to members at fair prices | Apna Bazar |
| Producer Cooperative Society | Assist producers with collective marketing/sales | Amul |
| Credit Cooperative Society | Provide loan facilities at reasonable rates | Urban Cooperative Banks |
| Housing Cooperative Society | Provide affordable housing to members | Army Welfare Housing Organization |
| Marketing Cooperative Society | Collect and sell products for best prices | Indian Farmers Fertiliser Cooperative (IFFCO) |
MCQs on Cooperative Society
Practicing MCQs on cooperative society allows students to revise concepts efficiently and test their understanding. Below are key multiple choice questions with answers and explanations, which are vital for quick preparation.
-
The first cooperative society in India was established in:
(a) 1904 (b) 1912 (c) 1919 (d) 1949
Answer: (a) 1904. The Kanaginahal society in Karnataka was formed in 1904. -
Which principle is followed in cooperative societies?
(a) One share one vote (b) One man, one vote (c) No vote (d) Multiple votes
Answer: (b) One man, one vote. Cooperatives operate with member equality. -
Cooperative societies in India are registered under which Act?
(a) Companies Act (b) Partnership Act 1932 (c) Cooperative Societies Act, 1912 (d) Trust Act
Answer: (c) Cooperative Societies Act, 1912. -
Who is called the father of the cooperative movement?
(a) Adam Smith (b) Robert Owen (c) John Maynard Keynes (d) Karl Marx
Answer: (b) Robert Owen. -
The major source of cheap rural credit besides banks is:
(a) Government (b) Cooperative Societies (c) Private Lenders (d) NBFCs
Answer: (b) Cooperative Societies. -
Joint and several liability applies in:
(a) Company (b) Partnership (c) Cooperative Society (d) Sole Proprietorship
Answer: (c) Cooperative Society. -
Surplus of a cooperative society is distributed:
(a) According to capital contribution
(b) Equally among members
(c) In proportion to member participation
(d) Retained as reserve
Answer: (c) In proportion to member participation. -
The democratic management principle in a cooperative society means:
(a) Members vote according to shares
(b) Each member has one vote
(c) Directors decide everything
(d) Only founders decide
Answer: (b) Each member has one vote. -
Which of the following is NOT a type of cooperative society?
(a) Producer (b) Consumer (c) Retail (d) Housing
Answer: (c) Retail (it is not an established category; ‘consumer’ covers this aspect). -
The highest authority in a cooperative society is:
(a) Government
(b) Managing Committee
(c) Registrar
(d) General Body
Answer: (d) General Body.
Principles of Cooperative Society
Cooperative societies function on well-defined principles. Understanding these core principles forms the foundation for answering most MCQs on cooperative society in board and competitive exams.
- Voluntary and Open Membership: Anyone fitting criteria can join or leave freely.
- Democratic Control: Each member has equal voting rights, embodying "one member, one vote".
- Limited Interest on Capital: Moderate, fixed returns on capital ensure focus is on service, not profit.
- Autonomy and Independence: Societies operate independently of external pressure.
- Concern for Community: Activities aim to benefit both members and wider society.
Key Features and Types of Cooperative Societies
MCQs on cooperative society often test the characteristics, types, and structure of such organizations. Features include voluntary membership, democratic control, service focus, limited liability, and legal entity status.
Types of Cooperative Societies
- Consumer Cooperative Societies
- Producer Cooperative Societies
- Credit Cooperative Societies
- Marketing Cooperative Societies
- Housing Cooperative Societies
Each type addresses specific member needs, such as affordable goods, credit, or housing. For further classification and comparison, see the detailed table above, or visit Types of Organisation.
Legal Aspects of Cooperative Societies
A cooperative society must register under the Cooperative Societies Act, 1912, or respective state acts. Registration gives it legal entity status, enabling contracts, ownership, and compliance with regulations.
To learn about other business structures and related law, explore Features of Company and Legal Aspects in Business: Contracts.
Practical Applications and Exam Relevance
Knowledge of cooperative societies is vital for commerce students, UPSC/SSC aspirants, and those preparing for competitive banking and rural economy exams. MCQs help check understanding and recall for both theoretical and application-based questions. Understanding cooperative societies also aids entrepreneurs and citizens in organizing community businesses.
Further Learning and Resources
For detailed concepts, visit Cooperative Society. Compare with Sole Proprietorship and Types of Companies for a broader understanding. For insights into the financial side, review Financial Market and New Profit Sharing Ratio pages.
At Vedantu, we simplify commerce concepts with structured MCQ banks, concise explanations, and downloadable resources for fast and effective revision.
In summary, MCQs on cooperative society help master legal forms, member roles, and exam concepts. Useful for school and competitive exams, business careers, and community development, this knowledge strengthens your foundation in commerce and business studies.
FAQs on MCQs on Cooperative Society – Practice Questions, Answers & PDF
1. What is a cooperative society?
A cooperative society is a member-owned and democratically controlled business that operates for the mutual benefit of its members, not for profit maximization. It's based on principles of self-help, self-responsibility, democracy, equality, equity, and solidarity. Key features include voluntary membership and limited interest on capital.
2. Who is known as the father of the cooperative society?
Robert Owen is widely considered the father of the cooperative movement. He championed the principles of cooperation and mutual aid as a means of improving social and economic conditions.
3. What principle is followed in a cooperative society?
A core principle is "one member, one vote," ensuring democratic control regardless of capital contribution. Other key principles include open membership, limited interest on capital, and a focus on community benefit.
4. Which principle is followed in a cooperative society Mcq?
Cooperative societies adhere to several core principles, but a frequently tested one is the "one member, one vote" principle, ensuring democratic governance regardless of individual investment levels. This contrasts sharply with the share-based voting structure of joint-stock companies.
5. Which is the first cooperative society in India?
The first cooperative society in India was established in 1905 at Kanaginahal, Karnataka.
6. What are the top 3 cooperatives in India?
Three prominent examples of Indian cooperatives include Amul (dairy), IFFCO (fertilizers), and the National Cooperative Union of India (NCUI). These represent diverse sectors and demonstrate the scale and impact of cooperatives in the country.
7. What are the main objectives of cooperative societies?
Cooperative societies aim to promote mutual help among members, prevent exploitation, and provide economic support. They foster collective action for shared prosperity and social well-being.
8. Can I download MCQs on cooperative society as a PDF?
Yes, many educational platforms offer downloadable PDFs of MCQs on cooperative societies for convenient offline access and revision. Check Vedantu's resources for such materials.
9. How do cooperative societies differ from joint stock companies?
Cooperative societies prioritize member benefit and operate on democratic principles (one member, one vote), while joint-stock companies focus on profit maximization for shareholders with voting rights tied to share ownership. The organizational structure, governance, and objectives differ significantly.
10. What legal acts regulate cooperative societies in India?
The primary legal framework includes the Cooperative Societies Act of 1912, along with specific state-level acts that govern the establishment, operation, and regulation of cooperative societies. These laws provide the necessary legal structure for cooperative functioning.
11. What are common challenges faced by cooperative societies in India?
Challenges faced include limited capital, political interference, management issues, and a lack of professional expertise. These factors can hinder the effectiveness and sustainability of cooperative organizations.
12. Name top Indian cooperative institutions as examples.
Leading examples include Amul (dairy cooperative), IFFCO (fertilizer cooperative), and the National Cooperative Union of India (NCUI). These illustrate the successful application of the cooperative model across diverse sectors in India.
13. How is the surplus distributed among members?
Surplus distribution in cooperative societies is typically proportional to members' participation and contributions, not solely based on capital investment. This reflects the principles of equity and mutual benefit.
14. Mcqs on cooperative society with answers pdf?
Many websites offer downloadable PDFs containing MCQs on cooperative societies with accompanying answers. These resources are valuable for exam preparation and self-assessment. Always check the source's reliability.
