Cash sales also avoided risk of loss due to bad debts and it could also encourage the habit of thrift among the members.ДЄ cooperative organisaВtion generally originates in the poorer section of population hence more emphasis is laid on the deВvelopment of moral character of the individual member.

In the absence of adequate capital, grant of credit is not possible. In a cooperative organisation вЂњcash and carry systemвЂќ is a universal feature. The surplus profits are distribВuted in the form of bonus but it is directly connected with the amount of purchases by the member in one year. In a consumersвЂ™ cooperative store, return on capital is fixed and it is usually not more than 12 p.c. In a cooperative organisation, we do not have the dividend hunting element. policy to encourage cooperaВtives, a cooperative society can increase its capital by taking loans from the State and Central CoopВerative Banks. CoopВeratives are formed by relatively poorer sections of society share capital is usually very limited. Capital:Д¬apital of a cooperative society is raised from members through share capital. A person having only one share can even become the president of cooperative society. Whether one contributes 50 rupees or 100 rupees as share capital, all enjoy equal rights and equal duties. Democratic Management:ДЄn individual member is considered not as a capitalist but as a human being and under cooperation, economic equality is fully ensured by a general rule-one man one vote. Under cooperation, service is of supreme importance and self-interest is of secondВary importance. The spirit of coopВeration works under the motto, вЂeach for all and all for each.вЂ™ This means that every member of a coВoperative organisation shall work in the general interest of the organisation as a whole and not for his self-interest.

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