Samacheer Kalvi Class 11 Commerce Chapter 7 Cooperative Organisation

Exercise

I. Choose the Correct Answer

Question 1. Membership in a co-operative organization is
(a) Not open to all
(b) Selective
(c) Open to all
(d) None of the options
Answer: (c) Open to all
In simple words: Co-operative organizations welcome everyone to join who can use their services, without any unfair exclusions. This open-door policy is a core principle, ensuring fairness and broad participation.

🎯 Exam Tip: Remember that "Open to all" highlights a fundamental principle of cooperatives, making it a key characteristic to mention in related answers.

Question 2. Co-operative fails because of
(a) Unlimited membership
(b) Cash trading
(c) Mismanagement
(d) Loss-making
Answer: (c) Mismanagement
In simple words: Co-operatives often struggle and can fail if they are not managed well. Good management is key for any organization to succeed, including co-operatives.

🎯 Exam Tip: Focus on internal weaknesses like mismanagement when discussing reasons for co-operative failures, as this is a common challenge for such organizations.

Question 3. All cooperatives are established with
(a) Philanthropic motive
(b) Service motive
(c) Profit motive
(d) Reform motive
Answer: (b) Service motive
In simple words: The main goal of all co-operatives is to serve their members and the community, not just to make money. They focus on helping people rather than earning big profits.

🎯 Exam Tip: Distinguish cooperatives from other business forms by emphasizing their primary "service motive" rather than a "profit motive" in your answers.

Question 4. Consumers Co-operation was first successful in
(a) England
(b) the USA
(c) Swiss
(d) India
Answer: (a) England
In simple words: The idea of consumers working together to buy things at fair prices first became successful in England. This showed how helpful co-operatives could be for everyday people.

🎯 Exam Tip: When discussing the history of co-operatives, remember England as the birthplace of successful consumer co-operation, often linked to the Rochdale Pioneers.

Question 5. Rochdale Society of equitable pioneers was started by
(a) Robert Owen
(b) H.C.Calver
(c) Talmaki
(d) Lambert
Answer: (a) Robert Owen
In simple words: The famous Rochdale Society, which set up the first modern co-operative, was inspired by Robert Owen's ideas. He was an important thinker in the co-operative movement.

🎯 Exam Tip: Robert Owen is a key figure in the early history of the co-operative movement; associating him with the Rochdale Pioneers is crucial for historical questions.

II. Very Short Answer Questions

Question 1. What do you mean by the co-operative organization?
Answer: A co-operative organization is a private business that is owned and managed by the people who use its products, supplies, or services. It focuses on meeting the needs of its members rather than maximizing profit.
In simple words: A co-operative is a business run by its customers or users, for their own benefit.

🎯 Exam Tip: When defining a co-operative, emphasize that it's "member-owned" and "member-controlled" and aims to serve members, not just make profit.

Question 2. Define Cooperatives.
Answer: According to H. Calvert, "Co-operation is a form of organization in which persons voluntarily associate together as human beings on the basis of equality for the promotion of the economic interests of themselves.” This means people choose to work together fairly to improve their financial well-being.
In simple words: Cooperatives are when people join together willingly and equally to help each other's money goals.

🎯 Exam Tip: When quoting definitions, ensure accuracy and briefly explain the meaning in simpler terms to show full understanding.

Question 3. What are Credit cooperatives?
Answer: Co-operative credit societies are groups formed to give short-term financial help to their members. Farmers, craftspeople, factory workers, and people with salaries often create these societies to get loans. They help members access money when needed.
In simple words: Credit co-operatives give small, short loans to their members, like farmers or workers.

🎯 Exam Tip: For credit co-operatives, highlight their role in providing "short-term financial help" and serving specific member groups like "agriculturists" or "industrial workers."

Question 4. Is a low tax possible in a cooperative society?
Answer: Yes, co-operative societies can have low taxes. Since they are not focused on making a big profit, the law often gives them special treatment. The government offers various tax breaks and exceptions to help them. This encourages their service-oriented mission.
In simple words: Yes, co-operatives often pay less tax because they focus on helping people, not making huge profits.

🎯 Exam Tip: Mention the "non-profit enterprise" nature of cooperatives as the key reason for their "preferential tax treatment" and "exemptions."

Question 5. Who are Rochdale pioneers?
Answer: The co-operative movement was started by Robert Owen in 1844. He created a consumer's co-operative society in England with 28 workers as members, which was named the “Rochdale Society of Equitable Pioneers.” These pioneers established fair principles for co-operation.
In simple words: The Rochdale Pioneers were 28 workers in England who started the first modern consumer co-operative in 1844, inspired by Robert Owen.

🎯 Exam Tip: Identify Robert Owen as the founder and 1844 as the year for the Rochdale Pioneers, emphasizing their role in establishing the first successful consumer cooperative.

III. Short Answer Questions

Question 1. What are the disadvantages of Cooperatives? (Any 3)
Answer:
1. **Limited funds:** Co-operative societies usually have fewer members and often serve people with less money, so their membership fees are low. This makes it hard for them to get enough money to grow or expand their activities beyond a certain point.
2. **Over-reliance on Government funds:** Co-operatives often struggle to raise their own money and depend heavily on government funds. The amount of money the government might give, and when, is often unsure, making planning difficult.
3. **Conflicts among members:** While co-operatives are built on teamwork, arguments and differences of opinion can still happen among members. These disagreements, like internal politics, can cause problems and affect how the co-operative works.
In simple words: Co-operatives face challenges like not having enough money, relying too much on government help, and members sometimes having arguments.

🎯 Exam Tip: When listing disadvantages, focus on issues like funding limitations, dependence on external support, and potential internal conflicts, as these are common challenges for cooperatives.

Question 2. Write a note on housing cooperatives.
Answer: Co-operative housing societies are formed to help members get a place to live, either by owning it or renting it. People who want to build their own homes come together to create these societies. These societies also give loans to members for their houses, which can be paid back over a long time, usually 15 to 20 years. This makes homeownership more accessible.
In simple words: Housing co-operatives help people get homes by providing places to live or giving loans to build houses, making it easier for them.

🎯 Exam Tip: Explain that housing cooperatives provide "residential accommodation" on an "ownership or rent basis" and offer "loans" to make housing affordable for members.

Question 3. What is meant by Producers Cooperative society?
Answer: Producer co-operatives are created and run by producers. These producers can work together as one group or as separate businesses to improve their marketing chances and make production more efficient. They help with tasks like processing goods, selling them, and distributing their own products. This collaboration helps reduce individual costs and efforts.
In simple words: Producer co-operatives are groups where producers work together to market their goods, process them, and improve how well they produce things.

🎯 Exam Tip: Define producer cooperatives by highlighting their ownership and operation by "producers" and their aim to "increase marketing possibilities and production efficiency."

Question 4. Write a note on cooperative farming societies.
Answer: When many farmers in a village combine their land and agree to treat it as one large farm for growing crops, they form a co-operative farming society. They buy things needed for farming and sell their crops together. For the society to work well, members choose leaders based on a "one member – one vote" system. This approach brings together resources for better output.
In simple words: Co-operative farming societies are when farmers join their lands to farm, buy supplies, and sell crops together, using a fair voting system for decisions.

🎯 Exam Tip: Key points for cooperative farming societies are "pooling land," "joint cultivation," and electing office bearers based on "one member – one vote."

Question 5. Write a note on industrial cooperatives.
Answer: An industrial co-operative is a group of workers and craftspeople involved in cottage or village industries. They come together to collectively produce, process, and sell goods made by members. They also provide members with the necessary services and help they need. This collective effort improves their market reach and efficiency.
In simple words: Industrial co-operatives are groups of workers or craftspeople who team up to make, process, and sell their products together, also getting help for their work.

🎯 Exam Tip: When describing industrial cooperatives, emphasize their association with "workers & craftsmen" in "cottage or village industries" and their focus on "collective production, processing, and marketing."

IV. Long Answer Questions

Question 1. What are the principles of cooperatives? (Any 5)
Answer:
1. **Voluntary and Open Membership:** Co-operatives are groups that people freely choose to join and leave. They are open to everyone who can use their services and is willing to take on the duties of being a member, regardless of gender, background, or beliefs. This principle ensures inclusivity.
2. **Democratic Member Control:** Co-operatives are managed democratically by their members. The people who buy the goods or use the services of the co-operative are the ones who actively help set the rules and make important choices.
3. **Member's Economic Participation:** Members contribute equally to the co-operative's funds and control them democratically. This means members benefit based on how much business they do with the co-operative, rather than how much money they have invested.
4. **Autonomy and Independence:** Co-operatives are self-governing and self-help organizations controlled by their members. If a co-operative makes agreements with other groups or gets money from outside, it does so in a way that keeps its members in control and maintains its independence.
5. **Education, Training, and Information:** Co-operatives provide learning and training for their members, chosen leaders, managers, and employees. This helps them contribute effectively to the co-operative's growth. They also share information with the public about what co-operatives are and how they help.
In simple words: The main ideas of co-operatives are that anyone can join freely, members control it fairly, everyone helps with money, they stay independent, and they teach members and the public about their work.

🎯 Exam Tip: When listing cooperative principles, ensure you explain each point clearly, highlighting concepts like voluntary membership, democratic control, and member economic participation.

Question 2. What are the advantages of a cooperative society?
Answer:
1. **Consumers Cooperative:** Consumer co-operatives are set up by consumers who want better prices or good quality for the goods or services they buy. Unlike regular shops that aim for the highest profit, a consumer co-operative exists to provide goods or services to its members without trying to make maximum profit.
2. **Producers Cooperative:** Producer co-operatives are formed and run by producers. These producers can decide to work together or keep their businesses separate while still teaming up to improve their marketing options and make production more efficient.
3. **Marketing Cooperative:** Co-operative marketing societies are groups of small producers who join together to sell their products. These marketing co-operatives handle various tasks like sorting goods, storing them, and advertising to help members reach more customers.
4. **Credit Cooperative:** Co-operative credit societies are groups formed to offer short-term financial help to their members. Farmers, craftspeople, factory workers, salaried employees, and others create these credit societies to access loans when needed.
5. **Housing Cooperative:** These co-operative housing societies aim to provide homes to their members, either to own or to rent. People who wish to build their own houses come together to form these societies, which then offer loans to members, repayable over 15 to 20 years.
In simple words: Co-operative societies offer many benefits, like helping consumers get fair prices, allowing producers to work together efficiently, assisting with marketing, providing credit for members, and making housing more affordable.

🎯 Exam Tip: To get full marks, describe how each type of cooperative (consumer, producer, marketing, credit, housing) specifically benefits its members and contributes to their welfare.

Question 4. Write a note on Consumer cooperative society.
Answer: Consumer co-operatives are set up by consumers who want to get better prices or higher quality for the goods or services they buy. Unlike regular retail stores that focus on making the most profit, consumer co-operatives aim to deliver goods or services to their members without trying to maximize profit. They also provide necessary items through the Public Distribution System (PDS). In India, examples include student co-operative stores, co-operative provision stores, and supermarkets run by co-operative societies.
In simple words: Consumer co-operatives are run by customers to get better goods or services at fair prices, without focusing on big profits, and they help distribute essential items.

🎯 Exam Tip: Explain that consumer cooperatives prioritize "member benefit" over "profit maximization" and play a role in fair distribution, like through the PDS in India.

Question 5. The misuse of funds is possible in a cooperative society? Give your reasons.
Answer: Yes, it is possible for funds to be misused in co-operatives. If the members on the managing committee are dishonest, they might steal the society's money. Many co-operative societies have faced financial problems and have had to close down because of dishonesty and improper use of funds. Transparency is crucial to prevent such issues.
In simple words: Funds can be misused in co-operatives if the leaders are dishonest, leading to financial problems and even closure.

🎯 Exam Tip: When discussing fund misuse, highlight the role of "corrupt managing committee members" as the primary reason, linking it directly to financial problems and society closures.

11th Commerce Guide Cooperative Organisation Additional Important Questions and Answers

I. Choose the Correct Answer

Question 1. At first, the cooperative movement was started by Robert Owen, in the year..........................
(a) 1935
(b) 1932
(c) 1844
(d) 1884
Answer: (c) 1844
In simple words: Robert Owen began the co-operative movement in the year 1844, marking an important start for this type of organization. This was a key moment in its history.

🎯 Exam Tip: Clearly state 1844 as the year Robert Owen initiated the cooperative movement, as this date is fundamental to its historical context.

Question 2. The first-ever Cooperative Society was started in the year ..........................
(a) 1944
(b) 1844
(c) 1488
(d) 1864
Answer: (b) 1844
In simple words: The very first co-operative society was established in 1844, setting a precedent for future co-operative efforts worldwide. This date marks the beginning of modern co-operation.

🎯 Exam Tip: Ensure you remember 1844 as the foundational year for the first co-operative society, as it's a crucial historical fact.

Question 3. The minimum number of members to start a cooperative is
(a) 10
(b) 15
(c) 20
(d) 25
Answer: (a) 10
In simple words: To officially start a co-operative, you need at least 10 people to join as members. This minimum number helps ensure there's enough participation.

🎯 Exam Tip: Knowing the minimum number of members (10) required to start a cooperative is an important detail for regulatory compliance questions.

II. Very Short Answer Questions

Question 1. How do you call a cooperative a democratic control organization?
Answer: Co-operatives are called democratic control organizations because their members control them. These members are the ones who buy the goods or use the services of the co-operative, and they actively help set the rules and make important decisions. This ensures that the organization serves its members' interests.
In simple words: Co-operatives are democratic because members who use the services are also the ones who control the rules and decisions.

🎯 Exam Tip: Emphasize that "democratic control" in cooperatives means members (users) actively participate in "setting policies and making decisions."

III. Short Answer Questions

Question 1. Define Cooperation.
Answer: In the words of H. Calvert, "Co-operation is a form of organization in which persons voluntarily associate together as human beings on the basis of equality for the promotion of the economic interests of themselves.” This means people choose to work together fairly to improve their financial well-being.
In simple words: Co-operation is when people willingly come together equally to help improve their own money matters.

🎯 Exam Tip: When defining cooperation, accurately quote H. Calvert's definition and clarify the key concepts of "voluntary association," "equality," and "economic interests."