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SS1: COMMERCE - 3RD TERM

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  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



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Lesson 3, Topic 3
In Progress

Similarities / Differences between Co-operative Society and Limited Liability Company

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Similarities between Co-operative Society and Limited Liability Company:

1. Both are legal entities.

2. Members buy shares.

3. They hold an Annual General Meeting (AGM)

4. Both are registered.

5. The shareholders receive dividend.

Differences between Co-operative Society and Limited Liability Company:

Co-operative Society:Limited Liability Company:
1.Formation: May only be registered under co-operative laws.Must be registered and incorporated under the company Act.
2.Management and Control: Elected committee manages the affairs of the movement.The shareholders elect the board of directors.
3.Registration: Members pay registration fees apart from the shares.Registration fees are not paid after paying fully for the shares held.
4.Profit Distribution: Surplus is divided on patronage basis.Surplus is divided in proportion to shareholding.
5.Aim: To promote members’ welfare.To make profit.
6.Right of Members: Members have equal voting rights.Members have controlling effect on the basis of their share.

Evaluation Questions: 

1. Briefly discuss types of cooperative societies

2. List types of cooperative societies

3. Mention the problems facing cooperative societies

4. What are the benefits one can derive from being a member of a cooperative society?

(a) State four characteristics of a Co-operative Society
(b) Mention and explain three types of Co-operative Society
(WASSCE June, 2004) View Answer

Responses

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Question 5

(a) State four characteristics of a Co-operative Society
(b) Mention and explain three types of Co-operative Society
(WASSCE June 2004)

Answer

(a) Four characteristics of a Co-operative Society

(i) Profit sharing is based on members’ patronage

(ii) Membership is open to all in a particular environment (no upper limit to membership).

(iii) Management of a co-operative is entrusted to a committee

(iv) Decisions are taken democratically

(v) Protection of members from exploitation

(b) Three types of co-operative Society

(i) Consumer Co-operative Society: This is formed by consumers. It is aimed at pooling their resources together to enable them to buy directly from the manufacturers at cheaper rates and sell to their members at reasonable prices.

(ii) Producer Co-operative Society: This is formed by producers of similar goods e.g. farmers. It is aimed at pooling their resources together to procure (buy or hire) equipment, machines as well as raw materials at cheaper rates and to enable them to engage in large-scale production.

(iii) Thrift and Credit Co-operative Society: This is formed by traders and others to encourage members to save money into a common pool which is later lent to members at reduced rate interest.

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