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Ø Lack of Motivation: Every co-operative society is formed to render service to its members rather than to earn profit.

This does not provide enough motivation to the members to put in their best effort and manage the society efficiently.

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Unlike sole proprietors and partners the personal properties of members of the co-operative societies are free from any kind of risk because of business liabilities.

Ø Elimination of Middlemen’s Profit: Through co-operatives the members or consumers control their own supplies and thus, middlemen’s profit is eliminated.

Ø Stable Life: A co-operative society has a fairly stable life and it continues to exist for a long period of time.

Its existence is not affected by the death, insolvency, lunacy or resignation of any of its members.

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