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It is quite easy to form a cooperative society. Its membership is open to all and the liability of members is limited". In the light of this statement, state the merits of cooperative society.

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The three merits of cooperative society are
(i) Ease of Formation: It is quite easy to form a cooperative society. Any ten adults can join together and form themselves into a cooperative. Very little time and money is required to get a cooperative society registered. The legal formalities are very few and simple.
(ii) Open Membership :Any person having a common interest can become a member of a cooperative society and can leave the society at anytime.
(iii) Limited Liability: The liability of every member is limited to the extent of his share in the society’s capital. Therefore, the risk faced by every member is limited.

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