Types of Co-operative Societies and their Functions Flashcards
(121 cards)
1
Q
The Primary aim of multiple purpose company is to ——–multi or many purposes designed for the benefit of the members. This includes giving ————— procuring and distributing agricultural ———- and marketing members’ produce.
A
serve
loans,
inputs,
2
Q
List at least two economic benefits members can derive from joining a Co-operatives Multipurpose Society
A
Members can receive loans with minimum interest
.
*
Farm inputs like herbicides can be bought and distributed to members at reduced prices
.
*
Members’ produce can be sold through the society
.
3
Q
Who typically forms Agricultural Co-operatives Societies, and what is their main goal?
A
These societies are usually formed by farmers who come together to benefit from special services such as receiving loans, farm inputs, and professional advice
4
Q
Name at least two economic functions of Agricultural Co-operatives Societies.
A
Members can receive loans
.
*
Tractors jointly owned can be used to clear farmlands and make them ready for cultivation
.
*
Access to farm inputs such as fertilizer
.
*
Access to professional advice
.
5
Q
In group farmers co-operatives societies Members practice ———— farming where their ——– are expected on the common land. Each member——- their own land and works exclusively on the cooperative’s land
A
communal
resources
loses
6
Q
How are the proceeds from the farm managed in a Group Farmers Co-operatives Society?
A
Proceeds from the farm are used for the benefit of all the members.
7
Q
Mention at least two ways Group Farmers Co-operative Societies benefit their members economically.
A
*
Members’ economic needs are taken care of by the society (e.g., food, shelter, clothing)
.
*
Education of members’ children is handled by the society
.
8
Q
What is the primary motive for forming Consumer Co-operatives Societies?
A
To procure essential goods at reasonable prices by eliminating the middlemen
9
Q
How do members of Consumer Co-operatives Societies achieve reasonable prices for goods?
A
Members pool resources together to buy directly from suppliers, cutting out middlemen. The profit that would have gone to middlemen benefits the cooperative and its members
10
Q
List two economic benefits for members of joining Consumer Co-operative Societies.
A
Members buy essential goods at reasonable prices
.
*
Members share profits that would have gone to the middlemen
.
11
Q
The main activity of Co-operatives Thrift and Credit Societies is mobilizing ——— among members through——– fees, savings, ——, and potentially from financial institutions.
A
funds
entrance
fines
12
Q
How are loans from Co-operatives Thrift and Credit Societies typically structured?
A
Loans received by members are usually repaid over a period of time, and the interest rate is low
13
Q
What is the core purpose of forming Co-operatives Investment and Credit Societies?
A
For members to invest funds in profitable ventures that can yield good dividends.
14
Q
Name three popular areas where Co-operative Investment and Credit Societies invest their accumulated funds.
A
Buying land collectively and sharing it among members
.
*
Buying shares of profitable business organizations
.
*
Building of houses and renting them out
.
15
Q
Besides investments, what other financial service do Co-operative Investment and Credit Societies provide to their members?
A
They also advance loans to members, which are intended for investment purposes.
16
Q
Why should members receiving loans from a Co-operative Investment and Credit Society invest them wisely?
A
To ensure the funds generate income to repay the loan. Diverting funds can lead to repayment problems
17
Q
What is the primary reason for farmers to form Marketing Co-operatives Societies?
A
So that the society can focus on finding markets to sell the farmers’ produce after harvest, allowing farmers to concentrate on farming activities.
18
Q
How do Marketing Co-operatives Societies help farmers secure better deals for their produce?
A
Through good market management, the society can negotiate better bargains and obtain good prices for the produce.
19
Q
In what ways do Marketing Co-operatives Societies support farmers with farming inputs and finances?
A
The society can buy farming inputs in bulk and distribute them to farmers on credit, with payment due after the harvest. They can also provide financial assistance to members during planting and land preparation
20
Q
What are the two main reasons drivers form Transport Co-operatives Societies?
A
1.
To enable drivers to own a car or vehicle for commercial purposes
.
2.
For the society to purchase motor spare parts, lubricants, and accessories at good prices for the driver-owners
.
21
Q
How does a Transport Co-operative Society that purchases spare parts benefit its members?
A
The profit that would have gone to spare parts dealers now benefits the society and the members by selling to them at good prices.
22
Q
What is the primary aim of forming Building and Housing Co-operatives Societies?
A
To help interested individuals own a house
23
Q
How do Building and Housing Co-operatives Societies assist their members in acquiring housing?
A
They may provide land with necessary documents, offer housing loans with minimum interest, or even build houses for rent to members.
24
Q
What types of professionals typically form Artisan Co-operatives Societies?
A
Artisans who have learned a trade, such as carpenters, bricklayers, and tailors
25
What are two potential benefits for mechanics joining a Mechanic Co-operatives Society?
The ability to buy genuine spare parts
.
*
Access to loans for expanding their workshops or other businesses
.
*
Opportunity for exchange of ideas among members
26
Besides loans, how else can a Bricklayers Co-operative Society benefit its members?
Members can obtain building materials from the society, and the society can help find business opportunities for its members by recommending them for construction work.
27
Name three benefits for professional tailors who form a Tailors Co-operatives Socie
Sharing experiences related to their profession
.
*
Getting soft loans to expand their businesses
.
*
Access to clothing materials bought in bulk by the society at reasonable prices
.
28
--------- reasons constitute the major motive why people join or form Cooperatives
Economic
29
how can a Co-operative fulfill the economic motive of a member?
reduction in costs in the member’s business
*
direct increase in their income
30
Can sociological reasons for joining a Co-operative be directly quantified,
No, the sociological reasons cannot be directly quantified, unlike the economic reason
31
As countries become more urbanized, family ties ------, and people may experience -------- and loneliness. Joining Co-operatives, which are associations of --------- can help to bridge the gap created by this isolation and loneliness
weaken
isolation
like minds,
32
Explain how Co-operatives can provide security to their members, especially in developing countries like Nigeria.
The average lifespan involves risks and crises that can catch individuals unawares. While developed countries offer social security, this is not the case in many developing countries like Nigeria, where the extended family support has also reduced. Co-operatives offer security and insurance through pooled efforts, taking over where individual strength stops.
33
Co-operatives offer group protection to their members against -------- or spiritual threats from outside, particularly when people feel -----------, dependent, and exploited by --------- or unscrupulous entities they cannot face individually.
physical
dominated
powerful
34
Individuals may admire others for their education and----------- qualities and may be motivated to join a Cooperative if such a person they hold in high ------ becomes a member. This admired individual is seen as a -------- who has recognized the benefits of Cooperatives.
personal
esteem
mentor
35
People who are conscious of their social position may join a Co-operative simply because their ---------- have done so, especially if they perceive the Co-operative as -----. Membership can be seen as a sign of --------- prompting others to join to catch up.
neighbours
elitist
superiority
36
What is meant by joining a Co-operative for an impulsive reason?
Some individuals join Co-operatives without fully understanding what they offer or being entirely convinced of their need for it. They do so because they see many people becoming members and believe they might miss out on potential advantages if they don't join.
37
How can custom or tradition influence the decision to join a Co-operative?
In rural or semi-urban areas, the desire to join Co-operatives may stem from customs or traditions. If a father was a prominent Co-operator, their children might be inclined to join as well.
38
Describe how an individual might use a Co-operative as a launching pad.
People may join Co-operatives to achieve a higher social and/or political position in the community. They might seek important posts within the cooperative to network and gain visibility, using it as an opportunity to showcase their leadership qualities.
39
Explain how external pressure, particularly from governments, can be a reason for joining a Co-operative.
Governments, especially in former Socialist countries, sometimes viewed Co-operatives as serving a socialist cause and enacted legislation making membership mandatory. Additionally, access to essential commodities, credit, or inputs might be made conditional upon Co-operative membership, leaving individuals with a choice in this case
40
What should the management of Co-operatives keep in mind regarding the reasons people join?
The management of Co-operatives should be aware that people join for several reasons, and justifying these reasons through their actions is crucial for maintaining the relevance of the Co-operative.
41
What is the central idea of the Cooperative Spirit?
The Cooperative Spirit emphasizes that each member's attitude should prioritize the Cooperative Society and its interests over their individual interests.
42
The Cooperative Spirit is the outcome of an inner ---------- that the Cooperative offers the best-------- for solving the felt needs of the members in competitive and hostile environments.
conviction
solution
43
---------------needs are unfilled desires that drive people to ------, such as the need for food, water, shelter, security, protection, esteem, love, and self-
Felt
despair
44
------ needs are unfilled desires that drive people to despair, such as the need for food, water, shelter, security, protection, esteem, love, and self-
Felt
45
What does the emphasis on the "supremacy of the Cooperatives" mean?`
It means that the interests of the Cooperative take precedence over everything else, including the personal interests of the members
46
If the Cooperative Spirit is low, there should be adequate member ------------ and public relations among the members. Emphasis should also be placed on efficient and effective use of ------ to enhance productivity, as increased economic benefits can improve a low Cooperative Spirit.
education
resources
47
What are some expected behaviors of cooperative members
Members should be prepared to submit to the decisions of the majority, work together with other members, and support the Cooperative at all times, even during temporary difficulties.
48
What happens to the Cooperative Spirit as a small cooperative grows?
As small cooperatives grow, the level of existing spirit tends to change.
49
What attitude should hired managers and their assistants possess in a cooperative?
They should possess Cooperative spirit by having a sense of dedication to the Cooperatives.
50
What are some factors that influence the level of intensity of the Cooperative Spirit?
The level of intensity differs based on whether membership was forced or based on free will, and it tends to be higher in smaller cooperatives than in larger apex organizations.
51
The Cooperative ------ is the relationship between a Cooperative organization as a business entity and its members' private business enterprises or household ----------
Nexus
economies..
52
What is the purpose of establishing a cooperative according to the concept of the Cooperative Nexus?
The Cooperative is established to promote the interest of the members.
53
How does member dependence on the cooperative relate to their Cooperative Spirit?
The more dependent a member is on the Cooperative's performance and the more crucial its services are for their continued existence, the higher the chance they will demonstrate greater concern, enthusiasm, and a higher level of Cooperative Spirit
54
The Cooperative -----is the degree of extra ---------- a member derives from participating in or being a member of the Cooperative compared to being a non-member. It's a comparison of satisfaction levels before and after joining.
effect
satisfaction
55
Determining the Cooperative Effect requires considering at least------------- business periods: one when the individual operates ---------- and another after joining the ----------
two
independently
Cooperative.
56
What are the two types of Cooperative Effects?
The Cooperative Effect can be either positive or negative.
57
When is the Cooperative Effect considered positive?
It is positive when the total level of satisfaction after becoming a Cooperator is higher than the total level of satisfaction before becoming a member.
58
When does a negative Cooperative Effect occur?
A negative effect occurs when the total satisfaction before becoming a member and participating in the Cooperative is higher than the total satisfaction after becoming a member and participating
59
What are the two kinds of "Price Effects" in cooperatives?
Increased price for members in marketing cooperatives and reduced prices for members in supply cooperatives.
60
Why can marketing cooperatives obtain increased prices for their members?
Because the Cooperative is in a stronger position to supply larger quantities compared to individual members, and there is a shortening of the channel of distribution by eliminating middlemen
61
How do supply cooperatives achieve reduced prices for their members?
By pooling together the small demands of members to buy in larger quantities, which allows the Cooperative to bargain with suppliers for discounts.
62
How does a cooperative lead to increased acceptability in economic circles for small producers or marketers?
By pooling resources, the Cooperative becomes large enough to negotiate and transact business with big buyers or users who prefer dealing with equally large suppliers.
63
What are some economic advantages that result in increased acceptability through cooperatives?
.
: Higher income, lower cost, loans, technical training and advice, as well as increased productivity
.
64
What does "increased adaptability" in a free market depend on?
The level of information available, the processing of such information, the ability to draw the right conclusion, and the ability to take the right action
65
How does joining a cooperative increase the "possibility of investment" for a member?
Members may be able to secure equipment or tools they couldn't afford individually, and under-utilization of equipment is avoided because other members also use it.
66
Explain how "possibilities of specialization" can arise in cooperatives, particularly auxiliary ones.
The Cooperative can take over one or more activities, allowing members to concentrate on a reduced number of activities, leading to benefits like increased productivity and income.
67
How do cooperatives facilitate the "transfer of risks"?
The Cooperative makes decisions concerning the future, and the associated anxiety and risk become that of the cooperative, not just the individual.
68
How does a cooperative contribute to the "sharing of risks"?
When adverse effects occur, the risks are shared by all members, not borne by one person alone
69
What are some outcomes of "Educational effect" in cooperatives?
Change in attitude, change in general outlook, better enlightenment, and changes in habits and understanding of the member.
70
cooperatives generate "Social Effect Through -------------activities and by emphasizing and practicing ---------- community spirit ("one for all and all for one"), while de-emphasizing -------- profit making.
educational
reasonable
dishonest
71
What three elements form the "tripod on which the survival and continuity of the Cooperatives rest"?
The Co-operative spirit, Co – operative nexus, and Co-operatives effects
72
What is crucial for the continuous survival of cooperatives?
The Cooperative spirit, which places the Cooperative organization over and above the personal interests of the members.
73
What are the two extreme forms of economic development that significantly influence the establishment of cooperatives,
The two extreme forms of economic development are the subsistence economy and the market economy
74
Establishing a cooperative is difficult in a subsistence economy because:
The output is mainly for domestic consumption with limited external linkages
.
◦
There is little or no income available for cooperative requirements like entrance fees or savings
.
75
A --------------is a form of organization that can be started without immediately undergoing stringent registration requirements. It can be particularly useful in rural areas.
pre-cooperative
76
What are the two contrasting lifestyles of prospective members that need to be considered when establishing cooperatives
The two contrasting lifestyles are a nomadic life style and a sedentary life style
77
Establishing cooperatives is difficult with a nomadic lifestyle because:
The basic group required for cooperative formation does not exist due to constant movement
.
◦
A fixed area of operation and a fixed address for the cooperative, as required by law, cannot be established
78
What are the characteristics of a sedentary lifestyle that make it more conducive to the establishment of cooperatives,
A sedentary lifestyle, characterized by a fixed abode in specific settlements, allows for the development of group bases and interpersonal relationships, which are foundational for establishing cooperatives.
79
Why is the average level of income of prospective members in a given area an important condition for establishing cooperatives,
A sufficient average income level is important because cooperative members are also owners and users who must contribute to the provision of inputs such as capital resources
80
Low average income can hinder raising the initial ------needed.
capital
81
How does the average size of existing business enterprises in an area influence the potential for establishing cooperatives
In areas with large business organizations already benefiting from economies of scale, the desire to form cooperatives will be weak. Conversely, in areas with small businesses, there will be a greater desire to pool resources through cooperatives.
82
how do negative impressions of existing businesses (other than cooperatives) in an area affect the likelihood of people forming cooperatives?
If prospective members perceive existing businesses as dishonest, charging exorbitant fees, not delivering on schedule, and supplying inferior products/services, they are more likely to be favourably disposed to forming cooperatives as an alternative.
83
How do positive impressions of existing businesses (other than cooperatives) in an area impact the desire to form new cooperatives,
If existing businesses are seen as doing a good job, supplying good quality products, providing good service, and charging moderate prices, then the desire to form cooperatives will be low.
84
------------ is needed to identify whether there is a need for an alternative like a cooperative, as the actual operations of businesses are often not disclosed to the public, potentially hiding unfair practices.
Adequate information
85
how do negative impressions of existing cooperatives in an area influence the potential for establishing new cooperatives?
If existing cooperatives are seen as inefficient or their officials are corrupt and unresponsive, the negative impression arising from this will likely extend to all forms of cooperatives generally, hindering the formation of new ones
86
How do difficult and unfavorable natural geographical conditions in an area tend to affect the inhabitants' need to cooperate,
In areas with difficult geographical conditions, inhabitants often show a high degree of the need to cooperate because individual survival is linked to the survival, care, and support of the group
87
how does a high population density in an area compare to a scattered population with bad communication in terms of chances for forming cooperatives?
An area with high population density tends to offer better chances for people to come together and form cooperatives compared to an area with scattered inhabitants and poor communication
88
What aspects of a community's existing social structure can provide a foundation for the successful establishment of modern cooperatives
Existing social groupings, strong local leadership, and a vibrant population that are already established traditions can serve as a foundation upon which modern cooperatives can take off.
89
what is the role of a "promoter" in the establishment of a cooperative?
A promoter is an outside person who is motivated to bring others together to form a cooperative. They provide the initial impetus and encouragement
90
List some examples of types of promoters found in developing countries like Nigeria,
◦
Individual philanthropists
◦
Religious bodies
◦
Trade unions
◦
Government promoters
◦
Existing cooperative institutions
91
Cooperatives promoted by religious bodies might become ---i----and potentially be used as instruments in settling scores between rivals due to religious ---ii---- and rivalry.
i exclusive
ii fanaticism
92
What potential danger does the source point out concerning trade unions promoting cooperatives?
Trade unions might try to use cooperatives as a weapon for ideological warfare, potentially leading to frictions within the broader cooperative movement
93
what is a significant risk associated with government promoters of cooperatives?
government promoters often tend to dominate and even take over the established cooperatives, causing them to become tools for pursuing government aims rather than the members' objectives, potentially becoming pseudo cooperatives.
94
How should the various conditions for establishing cooperatives be assessed in order to make a decision,
The conditions should be seen as a checklist, and an assessment should be made to determine whether the positive conditions outweigh the negative ones, or vice versa, to inform the decision of whether to establish a cooperative.
95
What is the dual nature of a cooperative society?
A cooperative has the dual nature of being a group of persons who own a private individual business enterprise jointly established and owned by members of the group and charged with solving members’ economic problems.
96
What happens if the benefit members receive through their cooperative becomes low?
If the benefit the members receive through the group the Cooperatives effect becomes low and if the probability is high that the members will desert the Cooperatives.
97
What is the problem with over-emphasizing the interest of the cooperative enterprise?
Overemphasizing activities that lead to high profits, focusing on what the market can pay rather than members' needs, neglecting small members for bigger ones, and managers acting like it's their own business can lead to a cooperative that is financially efficient but not member-efficient, resulting in members leaving or internal conflicts
98
What are some examples of neglecting the interest of the cooperative business enterprise?
Examples include a lack of interest in raising reserve funds and obtaining reasonable share capital, installations not being maintained or repaired, members sending poor quality products to the cooperative while selling high quality ones elsewhere, and members not using the cooperative for selling their products.
99
The neglect of a cooperative business enterprise often happens in cooperatives with ---------management
weak
100
When should the accounts of a cooperative be closed each year?
the accounts should be closed at the end of the financial year, which is usually March 31st every year
101
Why is it important to prepare final accounts promptly?
Prompt preparation of final accounts is important so that the Annual General Meeting (A.G.M.) can take place within the year and resolutions from previous meetings can be implemented.
102
When should the Annual General Meeting (A.G.M.) ideally be held?
The Annual General Meeting itself should be held not more than two months into the New Year
103
Where should a Cooperative Society keep its money?
Every Cooperative Society should operate a bank account where all money for the Society should be kept
104
Why should a cooperative not keep large cash balances?
Money is tempting, and an undisciplined treasurer may not resist the temptation to spend the society’s money, negatively affecting the business's smooth operation.
105
What types of bank accounts can a cooperative operate?
When a Society starts, it can operate a Savings account. As it develops, it can start operating a current account.
106
Who should be signatories to a Cooperative Society's bank account?
At least three officers: the president, Secretary, and treasurer should be signatories to the Society’s account.
107
What is a member's passbook in a cooperative?
The passbook is a booklet where details of a member’s financial dealing with the society are recorded, showing assets like savings and shares, and liabilities like loans.
108
What information does a member's passbook contain regarding loans?
The passbook indicates the regularity of loan repayments, including the date, amounts paid, and any outstanding amounts.
109
What should a member do with their passbook when they withdraw their membership?
When a member withdraws their membership from the Society, they have to submit their passbook to the Society.
110
Why should a primary cooperative society affiliate with a cooperative union?
Affiliation to a cooperative union can help a young society grow by receiving financial assistance, professional advice, and opportunities for exchanging ideas with other affiliated societies.
111
How does a cooperative society communicate with its affiliated union?
As an affiliate, two honest members of the Society can be nominated as delegates, and all messages between the Society and the union are sent through these delegates.
112
What is the role of the committee in relation to bookkeeping?
One of the responsibilities of the committee is to ensure that an effective bookkeeper is employed
113
For a new Society, an-----------bookkeeper can be engaged to manage accounts for multiple cooperatives. As the society progresses, it can hire its own bookkeeper
itinerary
114
What can be done to address an inefficient bookkeeper?
: One way to correct an inefficient bookkeeper is to send them to an appropriate school such as the Co-operatives Colleges
115
Why should cooperative staff be well remunerated?
Well-remunerated staff are more likely to be stable and hardworking.
116
If a staff member's duty involves handling members’ money, they should be ------ legally with government seal and guarantors (ideally an insurance organization)
bonded
117
Members can contribute to a favorable image through their personal and --------- conduct, demonstrating integrity, honesty, and dedication
business
118
What are some methods of cooperative propaganda or publicity?
Methods include producing almanacs and calendars, and distributing gifts like ball-pens and key holders
119
Why is it necessary to audit the accounts of a Cooperative Society?
it is necessary to ascertain that all transactions are genuine and in accordance with the Co-operatives bye-laws of the Society.
120
What should happen if there is a deviation found during an audit?
Any case of deviation found during an audit should be reported and promptly investigated
121
For the survival of cooperatives, the attitudes of the members towards their society and the attitude of the cooperative societies towards their members should be positive and -----------
constructive.
