Theory question 102
Co-operative SocietiesCommerce 2 (answer any five questions)
(a) Mention four types of co-operative societies.
(b) State two distinguishing features and two functions of each type mentioned in 2(a) above.
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(a) Any four: consumer/retail co-operative society; producer (agricultural) co-operative society; thrift and credit (savings and loans) co-operative society; wholesale co-operative society; multi-purpose co-operative society.
(b) Consumer/retail: features – formed by consumers, profit shared by purchases (dividend on purchases); functions – buys in bulk and sells to members at fair prices, cuts out middlemen. Producer: features – formed by producers (e.g. farmers) of similar goods, members pool resources; functions – joint purchase of inputs/equipment, joint processing and marketing of members' produce. Thrift and credit: features – formed by low-income earners, regular contributions/savings; functions – encourages saving, grants loans to members at low interest. Wholesale: features – formed/owned by retail co-operatives, large capital; functions – buys in bulk from producers, supplies retail societies, may manufacture. Multi-purpose: features – combines several activities, often formed by existing societies; functions – credit, marketing and supply services, education of members.
Two features and two functions for each of the four types.