Examkin

Question

Difficulty: EasyCooperative Societies: Types, Principles, Features, and Operation

Match each cooperative principle on the left with its correct operational rule on the right.

  • Democratic ControlEvery member is entitled to exactly one vote regardless of the amount of share capital owned.
  • Patronage DividendNet surplus is distributed to members according to their volume of transactions with the society.
  • Open MembershipMembership is accessible to all eligible individuals without social, political, or religious discrimination.
  • Limited Interest on CapitalReturns on share capital are strictly capped to discourage profit speculation.

Answer

Democratic Control matches with 'Every member is entitled to exactly one vote regardless of the amount of share capital owned'; Patronage Dividend matches with 'Net surplus is distributed to members according to their volume of transactions with the society'; Open Membership matches with 'Membership is accessible to all eligible individuals without social, political, or religious discrimination'; Limited Interest on Capital matches with 'Returns on share capital are strictly capped to discourage profit speculation'.
The Rochdale principles establish specific operational rules for cooperatives: Democratic control guarantees one vote per person; patronage dividend allocates surplus by business volume; open membership prohibits discrimination; and limited interest on capital caps returns on invested money to prioritize service over profit.

Step-by-Step Solution

1
Identify the definition of Democratic Control in a cooperative society.
Democratic control operates on the rule of 'one man, one vote'.
Cooperative governance prioritizes equality of members over financial capital power.
2
Identify the principle of Patronage Dividend.
Patronage dividend distributes surplus based on trading participation.
Members earn returns according to how much they use the cooperative's services.
3
Identify the principle of Open and Voluntary Membership.
Membership is open without artificial barriers or discrimination.
This guarantees non-discriminatory access to economic cooperation.
4
Identify the principle of Limited Interest on Capital.
Interest rates on share contributions are capped.
This maintains the cooperative's primary objective as service provision rather than investor capital gain.

Key Concept

Rochdale Principles of Cooperative Operations
Rate this question

Topics

Cooperative Societies: Types, Principles, Features, and Operation

More questions from this topic