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What’s cooperative society and Explain Four Advantages of Private Limited Liability Company

3(a) Explain What You Understand By Cooperative Society
Definition: A co-operative society is defined as a voluntary business organisation in which a group of individuals with common interest pool their resources together to promote the economic welfare of their members in production, distribution and consumption of goods and services.
Co-operative society is one of the oldest forms of business organisation. As far back as 1808, Robert Owen [1771-1858] established the first producer co-operative society in New Lonark, England. Also in 1884, Rochdole in collaboration with a group of twenty-eight weavers established a retail co-operative society.
In Nigeria, the first producer co-operative society was established in 1922 which has really contributed to the growth of Nigeria. Members may only be registered under co-operative laws. And their goals is to provide members welfare. Also each members have equal voting right.
(b) Explain Four Advantages of Private Limited Liability Company
Large Capital: Private Limited Liability Company can easily raise capital as a result of many shareholders that form the business.
It Has Legal Entity: Private Limited Liability Company has legal existence, hence it can sue and be sued in its own name.
Shareholders Have Limited Liability: In the event of business failure, the shareholders only lose his shares which he contributed and his personal properties or assets are protected.
Continuity of Existence: The chance of continuity of existence is high as the death or withdrawal of a shareholder cannot affect the existence of the company.
Efficient Management: The business is efficiently managed by a board of directors appointed by the shareholders.
Large Profit: Private limited liability companies do enjoy large profits because of their large size.
Possibility of Expansion: The business can easily expand because of the large capital available to set up and run the company.
It enjoys internal economies of large scale production.

Oluwamuyide Peter

My name is seyi, the main aim of creating this platform is to help users get information like school updates, electrical engineering topics and many more for free

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