(a) State four characteristics of a co-operative society. (b) Mention and explain three types of co-operative society

(a) Four characteristics of a co-operative society

1. Open and voluntary membership: Membership is open to all who are qualified and can be joined or left freely.
2. Democratic control: It operates on the principle of one member, one vote, irrespective of the number of shares held.
3. Service (not profit) motive: Its main aim is to serve and promote the welfare of members rather than to make maximum profit.
4. Sharing of surplus as dividend: Any surplus made is shared among members, usually in proportion to their patronage or savings.

Other characteristics include registration under the cooperative law and limited interest on capital.

(b) Three types of co-operative society

1. Consumer cooperative society: Formed by consumers who join together to buy goods in bulk directly from producers and sell to members at fair prices, thereby eliminating middlemen and reducing costs.
2. Producer (marketing) cooperative society: Formed by producers such as farmers who come together to obtain inputs, process and market their produce jointly and secure better prices for their goods.
3. Cooperative thrift and credit society: Formed by people who save regularly together so that members can obtain loans at low interest rates to meet their needs.

Other types include cooperative wholesale societies and multi-purpose cooperative societies.