a) List five types of cooperative societies. b) Explain the following business objectives: survival; profit maximization; growth; innovation; social respons...

Answer Details

(a) Five types of cooperative societies

1. Consumer (retail) cooperative society - buys goods in bulk and sells to members at fair prices.
2. Producer cooperative society - formed by producers or farmers to pool resources and market their output jointly.
3. Wholesale cooperative society - buys in bulk from manufacturers and supplies to retail cooperatives.
4. Credit (thrift) cooperative society - mobilises members' savings and grants them loans at low interest.
5. Producer/Marketing cooperative society - handles the storage, grading and sale of members' produce.

(Others acceptable: housing cooperative, transport cooperative, multipurpose cooperative.)

(b) Business objectives explained

• Survival: the basic aim of remaining in business by covering costs and withstanding competition, especially in the early years or during difficult trading conditions.
• Profit maximization: the goal of earning the largest possible surplus of revenue over costs, so as to reward the owners and finance further expansion.
• Growth: the objective of expanding the size of the firm, measured by increased sales, output, assets, market share or number of branches.
• Innovation: the aim of introducing new products, methods, technology or ideas in order to stay ahead of rivals and satisfy changing customer needs.
• Social responsibility: the duty of the firm to act in the interest of the wider society by protecting the environment, treating workers and customers fairly and supporting the community.