Theory question 102
Co-operative SocietiesCommerce 2
(a) Describe any four types of Co-operative Societies.
(b) Explain three advantages and three problems of Co-operative Societies.
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(a) Any four described: consumer (retail) co-operative – consumers buy in bulk and sell to members at fair prices, sharing surplus as patronage dividend; producer co-operative – producers (e.g. farmers) pool resources to produce and market output; credit and thrift co-operative – members save regularly and borrow at low interest; marketing co-operative – members sell their produce jointly for better prices; wholesale co-operative – retail co-operatives join to buy in bulk from producers; multi-purpose co-operative.
(b) Advantages (three): encourage saving; cheap loans to members; lower prices through bulk buying and cutting out middlemen; democratic control – one member one vote; surplus shared by patronage; educates members.
Problems (three): shortage of capital; poor management and lack of skilled staff; dishonesty/embezzlement by officials; members' lack of loyalty; limited membership and market; competition from big firms; little government support.
In (a) say who the members are and what each type does.