What features differentiate a co-operative society from a partnership form of business?

      

List features that differentiate a co-operative society from a partnership form of business.

  

Answers


Maurice
(i) A co-operative society is owned by members whereas a partnership is owned by partners.

(ii) A co-operative society has a perpetual existence( death of a member does not lead to dissolution) while a partnership has a limited life as its life depends on that of partners.

(iii) A co-operative society has a separate legal entity from owners while a partnership has no separate legal existence from partners.

(iv) For a co-operative society, members liabilities are limited to their capital contribution while a partnership, liabilities of partners is unlimited.

(v) Co-operative society operations are guided by by-laws while partnership operations are guided by the partnership Act/deed.

(vi) A co-operative society's aim of formation is to serve the interest of members at minimal fee while a partnership's main aim is to make profit.

(vii) A co-operative society's membership is between 10 and infinite while partnership membership is between 2 and 20 for non professional partnerships and 50 for professional.

(viii) A co-operative society operations are guided by the Co-operatives Act while partnership operations are guided by the partnership Act.
maurice.mutuku answered the question on August 12, 2017 at 07:38


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