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How Does A Cooperative Society In Nigeria Operate?

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Meg Hayes answered
A co-operative is owned by its people or members, so it will work by regular meetings being set up where these members will get together to discuss the company. These meetings will also be regularly attended by legal and business professionals who will also be involved in decisions that are made.

Below are some of the advantages and disadvantages of being involved in a co-operative business.

  • The advantage of shared costs
Because the members of a co-operative are responsible for that business and all work together to run it, the cost of that business must also be shared. In relation to running a business, the members of that co-operative must share the cost of advertising and other business related expenditures.

  • The advantage of equal monitoring
One great advantage of a co-operative business is that there is no need for any kind of supervision because all of the members have an investment in that company. This means that each member will supervise and monitor other members in order to make sure that the business runs smoothly. They will be wanting to protect their investment.

  • The disadvantage of the risk of financing
This is the main disadvantage of a co-operative business and is mainly due to the fact that the whole organization is not owned by one person, but is shared amongst a lot of members. The majority of co-operative business will also not receive any loans or external financing because one person is not solely responsible for its finances.

  • Disadvantage of shared decision
Even though having multiple people in charge of a business does have its benefits, it can also be a drawback. Multiple members must come to agreements on the responsibilities and big decisions of that company. They must also delegate the duties carefully and equally so that everyone is involved.

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