Forms of business organization

Advantages of JSC

1. Limited Liability.

2. Continuity of existence.

3. Benefits of large scale operation.

4. Professional Management.

5. Social Benefit.

Disadvantages of JSC

1. Formation is not easy.

2. Control by a Group.

3. Excessive government control.

4. Delay in Policy Decisions.

Suitability of JSC

A joint stock company is suitable where the volume of business is quite large, the area of operation is widespread; certain businesses like:

Banking and insurance. 

Manufacturing Industry.

Co-operative Society

Any ten persons can form a co-operative society. It functions under the Cooperative Societies Act, 1912 and other State Co-operative Societies Acts. The main objectives of co-operative society are: 

• rendering service rather than earning profit, 
• mutual help instead of competition, and
• self help in place of dependence. 

Classification of co-operatives

On the basis of objectives, various types of co-operatives are formed:

• Consumer co-operatives
• Producers co-operatives.
• Marketing co-operatives.
• Housing Co-operatives.

Characteristics of CooS

• Voluntary association.
• Membership: Min 10 – Max unlimited.
• Service Motive.
• Democratic Set up.
• Sources of Finances.
• Return on capital. 

Suitability of CooS

Generally it seems that a co-operative society is suitable for small and medium size operations. 

However, the large sized ‘IFFCO’ [Indian Farmers and Fertilisers Cooperative] and

the Kaira Co-operative Processing Milk under the brand name ‘AMUL’ are the illustrious exceptions.