Theory question 101
Co-operative SocietiesCommerce 2 (essay)
(a) State four characteristics of a co-operative society
(b) Mention and explain three types of co-operative society
Show the model answer
(a) Any four: voluntary and open membership; democratic control (one member, one vote); profits shared according to patronage (purchases) or as dividend; limited interest on capital; registered with limited liability/separate legal entity; aims at service to members rather than profit; encourages thrift; managed by an elected committee.
(b) Any three, explained: consumer (retail) co-operative – consumers buy in bulk and sell to members at fair prices; producer co-operative – producers (e.g. farmers) pool resources to produce and market their output; thrift and credit (savings) co-operative – members save regularly and borrow at low interest; marketing co-operative; wholesale co-operative.
Explain what each type does for its members.