Co-operative Society 5

Question 1

What is Co-operative society

Answer 1

This is a group with common interests who agree to come together to promote the welfare of members.

Question 2

What are the Objectives of Co-operative society

Answer 2

• Sell goods and services to members at a cheap rate
• Do business together and share profits among members
• Taking turns to use expensive machinery or equipment

Question 3

What are the features of Co-operative society

Answer 3

• It’s a voluntary organisation
• Capital is provided by members through contribution
• Decision making and workload are shared
• Profits are shared according to contribution

Question 4

What are the types of Co-operative societies

Answer 4

• Consumers co-operatives : Members contribute money to buy goods in bulk at reduced prices for consumption.
• Producers co-operatives: Members contribute money to buy expensive machines so that each member will have easy resources
• Retail co-operatives : Members buy directly from manufactures instead of from wholesalers
• Credit and thrift co-operatives: Members save some money regularly so that they can borrow large amounts of money later at little or no profit.

Question 5

Advantages of Co-operative societies

Answer 5

• Members have equal rights
• Members display strong loyalty
• It gives loans to members
• It encourages Members to save and invest
• Profits are shared among members in a fair manner.

Question 6

What are the disadvantages of Co-operative societies

Answer 6

• Disagreement among members
• Loans given may not be recovered
• Elected officers may mismanage the fund
• Opposition from sme manufactures and wholesalers