List five types of cooperative societies

a) List five types of cooperative societies.

b) Explain the following business objectives

• survival;
• profit maximization;
• growth;
• innovation;
• social responsibility.

Explanation

(a) Types of co-operative societies include:

• Manufacturers/producer co-operative/agricultural co-operative;
  • Multipurpose co-operative.
  • Thrift and credit society;
  • Retail co-operative;
  • Wholesale co-operative;
  • Consumer co-operative;

(b) Explanation of business objectives.

• Survival: This is the desire of firms to remain in business despite stiff competition.
• Profit maximization: One of the objectives of firms is to earn high profits to pay dividends to their shareholders and remain in business.
• Growth: This is the desire of a business to expand its activities beyond its current undertakings through an increase in sales, total assets and employment.
• Innovation: It is the ability of firms to create new products, methods of production as well as new areas of business through continuous research and development.
• Social responsibility: Businesses have the desire to contribute to the provision of basic infrastructure and also assist in the areas of education and health sectors of communities in which they operate.