Back to Course

SS1: COMMERCE - 3RD TERM

0% Complete
0/0 Steps
  1. Associations and Enterprises | Week 1
    3 Topics
  2. Co-operative Societies I | Week 2
    3 Topics
  3. Co-operative Societies II | Week 3
    3 Topics
    |
    2 Quizzes
  4. Public Enterprises | Week 4
    5 Topics
    |
    1 Quiz
  5. Limited Liability Companies | Week 5
    4 Topics
  6. Formation of Limited Liability Companies | Week 6
    1 Topic
  7. Limited Liability Companies III | Week 7
    3 Topics
    |
    3 Quizzes
  8. Trade Associations and Other Enterprises | Week 8
    1 Topic
  9. Chamber of Commerce | Week 9
    1 Topic
  10. Other Forms of Trade Association | Week 10
    1 Topic
    |
    1 Quiz



  • Do you like this content?

  • Follow us

Lesson 3, Topic 1
In Progress

Advantages / Disadvantage of Co-operative Societies

Lesson Progress
0% Complete

Advantages of Co-operative Societies:

1. It provides technical information to members.

2. It settles disputes among its members.

3. It improves the standard of living of its members.

4. It has a corporate existence and a perpetual succession.

5. It helps its members to obtain loan facilities from banks.

6. The profit is subject to tax.

7. It encourages the members to save.

8. They educate their members by providing training on new techniques. Monthly meetings are held where members are enlightened.

9. The members’ liability is limited to the amount contributed.

10. It enjoys economies of scale.

Disadvantages of Co-operative Societies:

1. People who are appointed by members of the committee to take charge of the society usually end up embezzling the funds which may lead to the winding up of the society.

2. The committee members may not be specialists in the management of the affairs of the society.

3. It proves difficult in most cases to recover loans given to members.

4. The capital available for investment is very low. Most of the members are low-income earners.

5. A high level of illiteracy exists among members which make their education and training very difficult.

6. There is a low return on investment because the profit distributed to members is low.

Responses

Your email address will not be published.

back-to-top
error: