(a) Four types of Co-operative Societies are:
(i) Credit and Thrift Co-operative society: It is formed by low income earners. It enables low income earners to pool large funds through weekly contribution. It grants loans to members at low rate of interest. It settles disputes among members.
(ii) Wholesale Co-operative Society: This is formed by wholesalers. It buys in bulk from producers. It sells in small units to retailers. It is able to raise large amount to finance wholesale purchases. It settles disputes among members.
(iii) Consumers Co-operative society: This is made up of consumers. They protect themselves against exorbitant prices of sellers. They buy in large quantities and distribute to members in small quantities. Surplus is distributed to members in proportion of patronage. It settles disputes among members.
(iv) Producer Co-operative: This is formed by producers of similar commodities. It undertakes joint marketing of products on wholesale or retail basis. It organizes cooperative production and shares any useful knowledge among members.
(b) Advantages of Cooperative societies are:
(i) Every member is enabled to contribute to common interests leading to proper harnessing of resources.
(ii) Co-operative society ensures greater production, reduces wastage and ensures greater financial benefit to members.
(iii) Cooperative societies encourage savings among members.
(iv) Cooperative societies have corporate existence and perpetual succession.
(v) Cooperative societies ensure that their members benefit from large scale production which would otherwise be beyond the reach of a single person.
(c) Problems of Co-operative societies are:
(i) Financial problems: Lack of capital inhibits the growth and development of co-operative societies.
(ii) Illiteracy: Many members cannot read and write and so do not under-stand what happens when it comes to paper work.
(iii) Amateur management: The management of cooperative societies lacks administrative and business acumen.
(iv) Difficulty in recovering loans: It is very difficult to recover loans granted to members.
(v) Corruption and embezzlement: Some members may embezzle the money of the co-operatives.