PUBLIC CORPORATION AND COOPERATIVE SOCIETY-MEANING, FEATURES, ADVANTAGES/DISADVANTAGES, SOURCES OF CAPITAL- BY INSTRUCTOR EUNICE OKOYE.
MEANING OF PUBLIC CORPORATION: It can be defined as a business organization by government to provide essential services for the benefit of the public. It is owned by government.
FEATURES OF PUBLIC CORPORATION:
It is owned by government.
It is financed with the tax payers’ money.
It is established to provide essential services to the public.
It is not meant to compete with any organization in providing its services.
It is set up by the act of parliament.
ADVANTAGES OF PUBLIC CORPORATION;
There is enough and sufficient capital to set it up.
Essential services is provided to the public.
The services provided is distributed fairly and equally.
It is used to control monopoly of providing services.
It raises the standard of living of the people.
DISADVANTAGES OF PUBLIC CORPORATION:
It requires huge amount of money or capital
It takes more time to take decision.
Sometimes overproduction and wastages are rampant among them.
Government interference always affects the management of the corporation.
There is no privacy in it.
MEANING OF COOPERATIVE SOCIETY: It is a business organization formed by people who have common interest in owning and running business for the benefit of their members.
TYPES OF COOPERATIVE SOCIETY: The following are some of the types of cooperative society.
PRODUCERS COOPERATIVE SOCIETY: This Cooperative Society is normally formed by group of farmers that produce agricultural products of the same kind e.g. rice, beans, cocoa etc.
CONSUMERS COOPERATIVE SOCIETY: It is a cooperative society formed by a group of consumers who buy goods in bulk for the benefit of their members. E.g Pepper or Gari sellers.
MULTIPURPOSE COOPERATIVE SOCIETY: This is when both the producers and the consumers come together for the benefit of their members in carrying out its operation.
CREDIT AND THRIFT COOPERATIVE SOCIETY: It is a type of society where members contribute money on regular basis to the purse of the society.
FEATURES OF COOPERATIVE SOCIETY: The following are some of the features of cooperative society:
It is the union of persons not capital.
It provides services for the benefit of its members.
It is easy to form.
The running of the society is by every member.
It is based on democratic system.
Dividends are shared according to the patronage.
Profit are shared based on sales, purchases and loan taken by the members.
ADVANTAGES OF COOPERATIVE SOCIETY: It has these advantages:
It encourages saving habit among members.
Members have access to loan.
Goods are purchased on behalf of members.
It can be used to reduce exploitation.
DISADVANTAGES OF COOPERATIVE SOCIETY: It has the following disadvantages.
There is insufficient capital for the business.
Misunderstanding among member can affect the day to day administration of the cooperative.
Unfaithfulness of the management may bring the business to an end.
Some of the management are not well experienced financially.
Most of the members are illiterate.
SOURCES OF CAPITAL OF COOPERATIVE SOCIETY: The sources of their capital could be from the following:
Voluntary contribution from the members.
It can be from fines and others fees.
Their profit are reinvest into the business.
They can also get loan from government and blanks.