(a) (i) Consumers' Co-operative are associations of consumers who pool their resources together, buy goods in bulk at wholesales prices from producers and
then sell the goods at retail prices to members and non-members.
The intention is to make the goods readily available to members at reasonable prices by eliminating the middlemen.
Profits are shared among members in the form of dividends based on how much a member buys
(ii) Producers' Co-operatives association are producers who are in the same line of production who come together to do joint business.
They use their resources collectively to produce particular products, alternatively may produce separately, but make joint arrangements
for selling the products. They share useful knowledge among themselves
(iii) Thrift and Credit Co-operative are associations of usually low income earners who contribute money, the total of which goes to members in turn. Sometimes, the money collected may be given as loan to a needy member at minimal interest, Thus member are encouraged to save and they also enjoy a greater bulk of money at a time. Members share profits/surplus in form of dividends.
(b) Problems faced by Co-operative Societies
(i) Members have other interest and so elected officials may apply themselves to the work only on Part-time basis.
(ii) Members being low income earners are unable to subscribe much share capital and so this limits the development of the co-operative.
(iii) Problem of maintaining loyalty. Members as mentioned have other interests and may not give full-loyalty to the cooperative.
(iv) Competition from other outlets
(v) Officers are to be elected from among the members. It may happen that at any one time there may not be qualified people and so unqualified people will be elected to run the business.
(vi) There have been cases of embezzlement of funds by the elected officers.