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Cooperative Societies
Meaning of Cooperative Societies
A cooperative Society exists when groups of workers, individuals, organizations, farmers or communities pull their resources together towards a common goal. The main purpose of the cooperative society is to:
(i) Sell goods and services to members at a cheap rate.
(ii) To do business together for profit purpose and share the profits among the members.
Types of Cooperative Society:
The common types of cooperative societies are:
- Producers Cooperative
- Consumers Cooperative
(a) Producers Cooperative:
Producers form a common association in order to sell their products in a uniform price instead of selling individually, e.g. producers of yam, garri, cocoa etc may form a cooperative society for the selling of their products.
(b) Consumers Cooperative:
In consumers’ cooperative, the members are consumers who contribute funds and buy goods in large quantities from the producers and sell in retail prices to members at a reduced and cheaper rate.
Advantages of Cooperative Society:
- Members have equal rights and votes.
- Prices are lower as they buy in bulk.
- Benefits of repayment of capital to any member who withdraws.
- Profits are shared in proportion to contribution.
- Members are allowed to pay back debts in installments.
Disadvantages of Cooperative Society:
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