This set of Industrial Management Multiple Choice Questions & Answers (MCQs) focuses on “Co-operative Organisations”.
1. Find the incorrect statement.
a) Members of a co-operative society join voluntarily
b) Members of co-operative societies have common political interests
c) The capital of a co-operative society is raised in the form of shares
d) Members of the co-operative are known as shareholders
View Answer
Explanation: A co-operative society is formed by a group of individuals who join the society voluntarily, having common economic interests. The co-operative society raises its capital in the forms of shares from its members. Hence, the members are called shareholders.
2. Which of the following is not a type of co-operative organisations?
a) Consumers’ co-operative societies
b) Housing co-operatives
c) Co-operative farming societies
d) Small and medium societies
View Answer
Explanation: The various forms of co-operative societies are:
i. Consumers’ co-operative societies
ii. Producers’ co-operatives
iii. Marketing co-operatives
iv. Housing co-operatives
v. Co-operative credit societies
vi. Co-operative farming societies
3. Which of the following is also called as “Industrial co-operatives”?
a) Consumers’ co-operative societies
b) Housing co-operatives societies
c) Producers’ co-operatives societies
d) Small and medium societies
View Answer
Explanation: Producers’ co-operatives societies are also called as ‘Industrial co-operatives’. Voluntary associations of small producers are formed as a co-operative society to eliminate capitalist class from the system of industrial production.
4. Find the odd one among the following about the co-operative societies.
a) Industrial co-operatives
b) Democracy
c) Limited membership
d) Each Shareholder has only one vote unlike joint-stock companies
View Answer
Explanation: Industrial co-operatives is one of the forms of co-operatives societies. Democracy is the key-note of the management of co-operative societies. There is no limit on the number of members (shareholders) allowed to join the co-operative society. Unlike the joint-stock companies, each shareholder has only one vote irrespective of share capital.
5. Match the following.
p) Consumers’ co-operatives i) Industrial co-operatives q) Producers’ co-operatives ii) Retail and trade services r) Co-operative credit societies iii) Loans to the needy
a) p – ii, q – i, r – iii
b) p – ii, q – iii, r – i
c) p – iii, q – i, r – ii
d) p – i, q – ii, r – iii
View Answer
Explanation: Consumers’ co-operatives can be seen in retail and trade services. Producers’ co-operatives societies are also called as ‘Industrial co-operatives’. Co-operative credit societies are formed to offer loan to needy individuals among its members.
6. Which of the following types of ownership provide only one vote to each shareholder irrespective of their capital contribution?
a) Public Ltd. Joint Stock Company
b) Pvt Ltd. Joint Stock Company
c) Co-operative societies
d) None of the mentioned
View Answer
Explanation: Co-operative societies have democratic management. Irrespective of the amount of capital contribution, each member i.e., a shareholder is provided with only one vote. Hence, the concentration of power and control among a few shareholders is eliminated.
7. Match the following.
p) Co-operative society i) Construct houses for its members at cheaper rates q) Co-operative housing ii) Co-operative society r) Co-operative farming iii) For high quality and quantity yields from farms
a) p – ii, q – i, r – iii
b) p – ii, q – iii, r – i
c) p – iii, q – i, r – ii
d) p – i, q – ii, r – iii
View Answer
Explanation: Co-operative societies exhibit democratic ownership. Co-operative housing societies are formed to construct and provide houses for its members at cheaper rates. Co-operative farming societies are formed for producing high quality and quantity yields from farms of its members.
8. Shares of co-operative societies are not transferable.
a) True
b) False
View Answer
Explanation: Shares of co-operative societies are not transferable and they belong to the individual who owns them for the very first time. Shares cannot be sold to other individuals, unlike joint-stock companies. Finance can be raised by issuing additional shares i.e., by increasing the size of members.
Sanfoundry Global Education & Learning Series – Industrial Management.
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