Co-operative
A co-operative (often referred to as a co-op) is set up by and run for the benefit of a group of people who share a common interest.
Features of a co-operative1.) Every member must purchase a minimum of one share in the co-op and will receive interest on them.
2.) Regardless of the number of shares they own, each member has only one vote. 3.) Profits are divided in accordance with the value of transactions that the member has with the co-op. 4.) Members have limited liability if the co-op is registered with the Registrar of Friendly Societies. |
Your local Credit Union is an example of a co-operative.
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Advantages1.) Members can usually achieve more in a co-op than on their own.
2.) Members are encouraged to do much business as possible with the co-op as profits are divided based on transactions with the co-op. 3.) Everyone has an equal say. 4.) Can have limited liability. 5.) Co-ops create employment in their local area. |
Disadvantages1.) Usually too small to compete with big companies.
2.) Appointments to management positions can be based on popularity rather than ability, which may lead to poor organisation. |
Questions
1.) How many votes does every member have?
a)3 b)1 c)2
2.) Who owns a co-operative?
a) members b) state c) sole trader
3.) Whats the mininum number of shares each member must have?
a) 4 b) 1 c) 5
4.) If the co-op registers with the registrar of friendly societies do they have limited liability?
a) yes b) no
5.) Does a co-op have Ltd after its name?
a) yes b) no c) maybe
6.) Which of the following is a co-op?
a) aer lingus b) credit union c) Dunnes stores
7.) A co-op is owned by one person
a) true b) false
8.) Members receive interest on their shares.
a) true b) false
9.) Co-ops are state-owned.
a) true b) false
10.) Which of the following is not a reason for setting up a co-op.
a) they have shared interest b) to create local jobs c) to compete with P.LC's.
a)3 b)1 c)2
2.) Who owns a co-operative?
a) members b) state c) sole trader
3.) Whats the mininum number of shares each member must have?
a) 4 b) 1 c) 5
4.) If the co-op registers with the registrar of friendly societies do they have limited liability?
a) yes b) no
5.) Does a co-op have Ltd after its name?
a) yes b) no c) maybe
6.) Which of the following is a co-op?
a) aer lingus b) credit union c) Dunnes stores
7.) A co-op is owned by one person
a) true b) false
8.) Members receive interest on their shares.
a) true b) false
9.) Co-ops are state-owned.
a) true b) false
10.) Which of the following is not a reason for setting up a co-op.
a) they have shared interest b) to create local jobs c) to compete with P.LC's.