Theory question 110
Business Organisations(a) Describe the following types of co-operative societies: (i) consumers' co-operatives; (ii) producers' co-operatives (iii) thrift and credit co-operatives.
(b) Highlight any two problems faced by co-operative societies in West Africa.
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(a)(i) Consumers' co-operatives: formed by consumers who buy goods in bulk and sell to members at fair prices, sharing any surplus as dividends based on purchases.
(ii) Producers' co-operatives: formed by producers (e.g. farmers) who pool resources to produce, process and market their output together and share the gains.
(iii) Thrift and credit co-operatives: members save regularly and can borrow from the pooled savings at low interest.
(b) Any two: shortage of capital; poor management and lack of skills; dishonesty and embezzlement; illiteracy of members; disloyalty of members; competition from large firms; government interference.
Each type is defined by who forms it and what it does for members.