Which of the following correctly describes cooperative sector industries?
- AOption (a)
Owned and operated by central government agencies.
- BOption (b)
Operated solely for export purposes.
- COption (c)
Owned by workers or suppliers sharing profits and losses
- DOption (d)
Maintained by foreign companies with Indian partnerships.
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Correct answer
Owned by workers or suppliers sharing profits and losses
Why this answer is correct
The correct answer is Owned by workers or suppliers sharing profits and losses.
Key Points
- Cooperative sector industries are those owned and managed by groups of individuals who share common economic interests. These groups often consist of workers, suppliers, or consumers.
- The primary objective is to ensure mutual benefit, where profits and losses are shared equally among all members.
- These industries follow the principle of cooperation, which promotes economic equality and prevents exploitation.
- Examples of cooperative sector industries include milk cooperatives like Amul, handloom cooperatives, and agricultural cooperative societies.
- Cooperatives play a crucial role in empowering rural areas by providing employment, income stability, and promoting sustainable economic growth.
- They also adhere to the democratic principle of one member, one vote, ensuring equitable decision-making.
Additional Information
- Owned and operated by central government agencies
- Industries owned and operated by the central government fall under the category of public sector industries, not cooperative sector industries.
- These industries are managed by the government for purposes like national development, security, and providing essential services.
- Examples include Indian Railways, BHEL, and ONGC.
- Operated solely for export purposes
- Industries that primarily focus on exports are often classified as export-oriented industries.
- They aim to produce goods and services for international markets rather than domestic consumption.
- Examples include industries involved in textiles, pharmaceuticals, and IT services catering to global demand.
- Maintained by foreign companies with Indian partnerships
- Industries maintained by foreign companies in collaboration with Indian entities are referred to as joint ventures.
- They aim to combine resources, technology, and expertise from both parties for mutual benefit.
- Examples include Maruti Suzuki, a joint venture between India's Maruti and Japan's Suzuki.