The staff of Kander Manufacturing Company Limited formed a cooperative society to enable them to have access to funds. (a) Name the type of cooperative soci...

(a) Type of cooperative society formed

Since the staff came together mainly to have access to funds (savings and loans), the society they formed is a Cooperative Thrift and Credit Society (also called a savings and credit or thrift and loan cooperative).

(b) Four features of the cooperative society

1. Open and voluntary membership: Anyone qualified may join or leave freely without compulsion.
2. Democratic control: It is run on the principle of one member, one vote, regardless of the number of shares held.
3. Common bond and mutual help: Members join together for a common economic purpose and to help one another.
4. Contribution of savings and payment of dividend: Members save regularly and surplus is shared as dividend, usually in proportion to patronage or savings.

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

(c) Three advantages of the cooperative society

1. Members can obtain loans at low rates of interest to meet their needs.
2. It encourages the habit of thrift and regular saving among members.
3. Surplus (profit) is shared among members as dividend, so they benefit directly.

Two disadvantages

1. Shortage of capital, since it depends mainly on the small contributions of members.
2. Poor or inefficient management, as officers are often members with little business or managerial expertise.