3(a) Explain What You Understand By Cooperative Society
Definition: A co-operative society is defined as a voluntary business organisation in which a group of individuals with common interest pool their resources together to promote the economic welfare of their members in production, distribution and consumption of goods and services.
Co-operative society is one of the oldest forms of business organisation. As far back as 1808, Robert Owen [1771-1858] established the first producer co-operative society in New Lonark, England. Also in 1884, Rochdole in collaboration with a group of twenty-eight weavers established a retail co-operative society.
In Nigeria, the first producer co-operative society was established in 1922 which has really contributed to the growth of Nigeria. Members may only be registered under co-operative laws. And their goals is to provide members welfare. Also each members have equal voting right.
(b) Explain Four Advantages of Private Limited Liability Company
Large Capital: Private Limited Liability Company can easily raise capital as a result of many shareholders that form the business.
It Has Legal Entity: Private Limited Liability Company has legal existence, hence it can sue and be sued in its own name.
Shareholders Have Limited Liability: In the event of business failure, the shareholders only lose his shares which he contributed and his personal properties or assets are protected.
Continuity of Existence: The chance of continuity of existence is high as the death or withdrawal of a shareholder cannot affect the existence of the company.
Efficient Management: The business is efficiently managed by a board of directors appointed by the shareholders.
Large Profit: Private limited liability companies do enjoy large profits because of their large size.
Possibility of Expansion: The business can easily expand because of the large capital available to set up and run the company.
It enjoys internal economies of large scale production.
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