(a) Mention four types of co-operative societies. (b) State two distinguishing features and two functions of each type mentioned in 2(a) above.

Answer Details

(a) Four types of co-operative societies

1. Consumer (retail) co-operative society
2. Producer co-operative society
3. Wholesale co-operative society
4. Credit and thrift (co-operative bank) society

(b) Distinguishing features and functions of each

1. Consumer co-operative society

Features: (i) It is owned and controlled by consumers who are its members. (ii) It buys goods in bulk and sells directly to members, and surplus (dividend) is shared according to purchases made.

Functions: (i) It supplies members with genuine goods at fair prices, eliminating middlemen. (ii) It protects members from exploitation and price cheating.

2. Producer co-operative society

Features: (i) Membership is made up of producers such as farmers or craftsmen. (ii) Members pool resources to produce and market goods jointly.

Functions: (i) It provides members with inputs such as seeds, fertiliser and tools. (ii) It markets members' produce collectively and secures better prices.

3. Wholesale co-operative society

Features: (i) Its members are usually the retail (consumer) co-operative societies themselves. (ii) It performs the wholesaling function on behalf of member societies.

Functions: (i) It buys goods in large quantities from manufacturers for member societies. (ii) It warehouses goods and distributes them to the retail co-operatives.

4. Credit and thrift co-operative society

Features: (i) Members contribute regular savings into a common pool. (ii) Loans are granted to members at low interest rates.

Functions: (i) It encourages the habit of saving among members. (ii) It grants credit facilities to members to meet personal and business needs.