Question

2(a) The staff of Kander Manufacturing Company Limited formed a cooperative society to enable them have access to funds. (i) Name the type of cooperative society they formed.
(b) State four features of the cooperative society.
(c) State three advantages and two disadvantages of the cooperative society.

Accepted Answer

(a)(i) Thrift and savings cooperative society.

(b) Features of a thrift and savings cooperative society:
• They are formed by people who work in the same organization, most of the time.
• They instill saving habits in their members.
• Appointment to posts is based on a democratic system.
• The society is a going concern in most cases.

(c) Advantages of thrift and savings societies:
• They provide loans to members at a very low interest rate.
• They help members meet up with their contingencies.
• They encourage savings habits and investment.

Disadvantages of thrift and savings societies:
• There is a limit to the loans given to members.
• Management issues, as some of the people appointed to run the cooperative are not management-oriented.

WAEC Commerce 2019 Theory — Question 2

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