Nature of Co-operatives

Question 1

Co-operative action originates from individuals pooling their —i—- to obtain what is needed —ii—-

Answer 1

i. resources
ii collectively

Question 2

The first co-operative act of man was when the first human family started gathering food before ——- was invented.What was the first co-operative act of man?

Answer 2

agriculture

Question 3

What are examples of mutual aid in traditional societies?

Answer 3

Examples include assistance during birth celebrations, death and funeral ceremonies, and help for the injured or sick.

Question 4

Traditional societies developed patterns of mutual assistance, reduced them to custom, and passed them down through ———-

Answer 4

Education

Question 5

The main tenet of modern co-operation is—— based on voluntary agreements among individuals.

Answer 5

voluntarism,

Question 6

What defines a co-operative?

Answer 6

A co-operative is defined as any form of two or more persons working together to achieve a common goal, which can be permanent or ad hoc.

Question 7

What is the primary objective of co-operatives?

Answer 7

The primary objective of co-operatives is not to make profit, unlike private entrepreneurs.

Question 8

Co-operatives are business organizations of ——– aiming to obtain goods and services at cost, while private companies focus on ——-

Answer 8

i. patrons
ii profit-making.

Question 9

Patrons, as owners, must control the co-operative to ensure quality service and avoid ————

Answer 9

exploitation.

Question 10

Surplus is shared among members in ———- to the volume of business each member conducts with the co-operative.

Answer 10

proportion

Question 11

What are some organizations that are not co-operatives?

Answer 11

Co-operatives are not trade unions, political parties, parastatals, humanitarian organizations, or profit-making companies.

Question 12

A co-operative is an association of people for mutual aid, run like a –i—entity, financed by members, and governed by —ii— rules.

Answer 12

i business
ii established

Question 13

——-organizations, also known as traditional co-operative institutions, exist in every community.

Answer 13

Self-help

Question 14

Traditional co-operatives refer to ———- models like the Rochdale Equitable Pioneer, established in 1844 in England.

Answer 14

historical

Question 15

What is a common alternative name for traditional co-operative institutions?

Answer 15

Some people refer to traditional co-operative institutions as Common Initiative Groups (C.I.G.) or simply self-help organizations.

Question 16

What is an example of a self-help organization in Nigeria?

Answer 16

Savings societies such as ‘esusu’ in Ibo land and ‘adashi’ in Yoruba land are examples of self-help organizations in Nigeria.

Question 17

What is a common activity in farming communities related to self-help organizations?

Answer 17

Labour exchange activities where members work on each other’s farms according to a rotation plan.

Question 18

What is a characteristic of self-help organizations?

Answer 18

Self-help organizations often engage in common projects for the benefit of the entire community.

Question 19

A ——- co-operative is a business entity formed when individuals pool limited ——— to achieve common objectives.

Answer 19

formal
Resources

Question 20

What is a key difference between formal co-operatives and self-help organizations?

Answer 20

Formal co-operatives are owned by members who take investment risks, while self-help organizations do not involve such risks.

Question 21

In formal co-operatives, major decisions are made ———by members, while in self-help organizations, a/an——- may make decisions with less consultation

Answer 21

I. collectively
Ii Opinion leader

Question 22

Co-operatives are long-term concerns that——– their founders, whereas many self-help organizations operate on an ———– basis.

Answer 22

i. outlive
ii. ad-hoc

Question 23

What are the similarities between formal co-operatives and self-help organizations?

Answer 23

Both share identical interests, have defined roles for members, and maintain communication within the group.

Question 24

What are the common identities in self-help organizations and formal co-operatives?

Answer 24

Members may enjoy a common identity, which can include recognized names or a peculiar mode of dressing.

Question 25

Self-help organizations are not co-operatives as they lack the recognized and defined characteristics of co-operatives. True or False

Answer 25

True

Question 26

The essentialist approach defines co-operatives in terms of values, --------- and overall economic and ----------- goals pursued with a sense of mission for accomplishment.

Answer 26

ideologies social,

Question 27

What is a limitation of the essentialist approach?

Answer 27

A limitation is that values, ideologies, and goals differ across economic systems, making it impossible to create a universal definition.

Question 28

The nominalist approach selects ----------elements present in all--------- claiming to be co-operatives, regardless of the economic system.

Answer 28

structural institutions

Question 29

What are the structural elements emphasized in the nominalist approach?

Answer 29

1) Individuals unified by a common goal. 2) Joint action for economic betterment. 3) A jointly owned business enterprise. 4) A promotional relationship between members' businesses and the co-operative.

Question 30

What is an example of an essentialist definition of a co-operative?

Answer 30

An association of socially weak persons trying to achieve certain social aims within an enterprise open to all, based on solidarity and democracy.

Question 31

What are some problems with the essentialist definition?

Answer 31

Defining 'socially weak persons', 'enterprise', and 'social responsibility' lacks a common basis across different economic systems.

Question 32

A co-operative is an association of persons usually of ----- means who voluntarily join to achieve economic ends through a ----------- controlled business.

Answer 32

limited democratically

Question 33

What does 'association of persons' mean in the context of co-operatives?

Answer 33

It refers to individuals who are ready to work together and solve problems jointly, not including those with malicious intent.

Question 34

Members usually have limited financial resources but are willing to contribute ------------ to the society.

Answer 34

capital

Question 35

Individuals choose to join a co-operative without -------, and their interest may wane if -------- are removed.

Answer 35

coercion inducements

Question 36

What is the primary economic goal of a co-operative?

Answer 36

To achieve economic goals such as profit or surplus, allowing members to earn more money and access goods at lower prices.

Question 37

What does 'democratically controlled' mean in co-operatives?

Answer 37

Members control the co-operative through a one member, one vote system, regardless of their investment size.

Question 38

What is the significance of equitable contribution to capital in co-operatives?

Answer 38

All members are expected to contribute fairly to the capital of the co-operative as it operates as a business entity.

Question 39

Members share both the profits and losses of the co-operative based on their participation and ---------------.

Answer 39

patronage.

Question 40

What are the two approaches to defining co-operatives?

Answer 40

The essentialist approach and the nominalist approach.

Question 41

Why is the nominalist approach commonly accepted?

Answer 41

It provides a suitable platform for analysis and understanding of co-operatives, overcoming the limitations of the essentialist approach.

Question 42

What is a Sole Proprietorship?

Answer 42

A Sole Proprietorship is a one-man business where the owner finances the business alone, makes all decisions, and bears all risks. ## Footnote Examples include barbers and street vendors.

Question 43

A Partnership Business involves at least two persons pooling resources like skills, finance, and----- to operate the business, sharing risks and responsibilities.

Answer 43

time

Question 44

Private Limited Companies often start as -------- businesses that invite others to buy ---------- allowing for better financing and shared profits based on share ownership.

Answer 44

family shares ## Footnote Examples include Femi Johnson & Co. Ltd and Odusote Bookshop Ltd.

Question 45

Public Limited Companies are large organizations whose ---------are publicly traded on the Nigeria Stock Exchange, typically managed by well-trained managers.

Answer 45

shares ## Footnote Examples include Nigeria Bottling Company Plc and Union Bank of Nigeria Plc.

Question 46

Public Corporations are established by the government to provide services that may not be profitable for private individuals, preventing --------- and ensuring public welfare.

Answer 46

exploitation

Question 47

What are the criteria for comparing Co-operatives and other businesses?

Answer 47

The criteria include Ownership, Individual Ownership Limits, Transfer of Ownership, Control, Benefits, Guiding Rules for Transactions, and Size of Board of Directors.

Question 48

Effective business objectives should be Specific, Measurable, --------, Realistic, and Timely.

Answer 48

Action-oriented

Question 49

What are common business objectives?

Answer 49

Common business objectives include making profit, providing quality products or services at affordable prices, ensuring survival, having quality workers, and being an industry leader.

Question 50

In Co-operatives, ownership is generally -------- to those who qualify for membership, while Non-Co-operatives allow anyone who can buy shares.

Answer 50

restricted

Question 51

What is the voting structure in Co-operatives versus Non-Co-operatives?

Answer 51

In Non-Co-operatives, voting is based on the number of shares owned, while in Co-operatives, each member typically has one vote regardless of share ownership.

Question 52

In Non-Co-operatives, net income is distributed to shareholders based on their investments, while in Co-operatives, it is distributed to member-owners based on their -------.

Answer 52

transactions

Question 53

What are the two main forms of Productive Co-operatives based on the extent to which they take over members' private enterprises?

Answer 53

* Ordinary productive co-operatives, where the cooperative takes over all business functions of members, and members become employed by the cooperative . * Full productive co-operatives, where in addition to taking over business functions, private households of members cease to exist and are absorbed into common households

Question 54

Auxiliary (service) Co-operatives do not perform all business ------- for their members; they only take over some functions like supplying goods, providing -------, marketing produce, or investing surplus funds. Members retain their private enterprises.

Answer 54

functions loans

Question 55

What is the primary basis for classifying cooperatives based on their Legal Status?

Answer 55

The primary basis is whether the co-operative is registered with appropriate legal authority or unregistered

Question 56

What are the three classifications of Registered Co-operatives based on the limitation of liability?

Answer 56

* Co-operatives with liability limited by shares, where liability is limited to the value of shares held Co-operatives with liability limited by guarantee, where liability is limited to the value of shares plus a specified multiple of that value Co-operatives with unlimited liability, where each member can be held for all the outstanding debts of the society .

Question 57

How are Co-operatives classified based on their Geographical Area of Operation?

Answer 57

Urban Co-operatives, operating in urban areas Rural Co-operatives, operating in rural areas

Question 58

----- Co-operatives is the smallest units, covering a limited area with individual members . They may also be called ----- Co-operatives . * ------ Co-operatives: Formed by primary co-operatives, covering wider (regional) areas . They are sometimes called ------ Co-operatives . * ------ Co-operatives: Formed by secondary co-operatives, covering the areas of their constituent members . They may be called --------- Co-operatives if they cover the whole country.

Answer 58

1.Primary Local 2.Secondary regional 3.Tertiary National

Question 59

A ------ is defined as any coming together of primary co-operatives to form another common body. In this sense, it is identical to a Federation. In Nigeria, a ------ can also be seen as a primary co-operative society

Answer 59

1.union.

Question 60

A ---------- is a result of joint action by a number of independent primaries and/or secondaries and/or tertiaries

Answer 60

Federation

Question 61

An apex co-operative is the same as a functionally specialized --------- Cooperative,

Answer 61

national

Question 62

Name four types of Co-operatives that emerge based on the Sector of the National Economy they operate in.

Answer 62

Agricultural Co-operatives * Industrial/Small scale Industrial Co-operatives * Trading (Whole/Retail) Co-operatives * Service co-operatives (e.g., Banking, Insurance, transport) .

Question 63

How are Producers’ Co-operatives further categorized based on the economic status of members?

Answer 63

Producers’ Co-operatives can be further broken down into: * Farmers’ Co-operatives * Traders’ Co-operatives * Craftsmen’s Co-operatives

Question 64

A ----------’ Co-operative is where the members are customers of household items which they seek to obtain from the Cooperative.

Answer 64

Consumers

Question 65

A Workers’ productive Co-operative is where workers want to obtain the best ------- for their labour input through their co-operatives.

Answer 65

remuneration

Question 66

What is the difference between a single-purpose and a multi-purpose Co-operative?

Answer 66

A single-purpose Co-operative has only one field of activity (e.g., a marketing Cooperative) . * A multi-purpose Co-operative has more than one field of activity (e.g., credit and marketing for members

Question 67

How are Co-operatives classified based on the Size of Membership?

Answer 67

* Small co-operatives, mostly seen in rural areas . * Medium co-operatives, with a larger numerical size than small co-operatives . * Large Co-operatives, with a membership size larger than medium co-operatives .

Question 68

Describe the characteristics of Traditional Co-operatives regarding decision-making and management.

Answer 68

In Traditional Co-operatives, members make all the decisions, and management is responsible only for executing those decisions. Members usually make explicit demands for services, and management must comply

Question 69

What are the key features of Market Co-operatives in terms of member involvement and ties?

Answer 69

In Market Co-operatives, members provide broad guidelines, but management is responsible for the activities to accomplish these needs. The cooperative enterprise does not have close exclusive ties with the member economy, having ordinary market ties instead.

Question 70

What is the defining characteristic of Integrated Co-operatives regarding decision-making?

Answer 70

In Integrated Co-operatives, the members have decided to leave all aspects of decision-making to management