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Difficulty: EasyCooperative Societies: Types, Principles, Features, and Operation

Match each type of cooperative society on the left with its primary operational function on the right.

  • Credit and Thrift CooperativeEncouraging regular savings and extending short-term, low-interest credit to members
  • Producers' CooperativeProcessing, storing, and jointly marketing goods produced by member craftsmen or farmers
  • Consumers' CooperativePurchasing merchandise in bulk directly from manufacturers to sell to members at affordable prices

Answer

Credit and Thrift Cooperative pairs with encouraging regular savings and extending low-interest credit; Producers' Cooperative pairs with processing, storing, and jointly marketing member goods; Consumers' Cooperative pairs with purchasing merchandise in bulk directly from manufacturers to sell at affordable prices.
The pairings correctly match each specific type of cooperative society with its primary functional purpose in commerce. Credit and Thrift societies manage savings and credit facilities; Producers' societies aid in processing and marketing members' outputs; Consumers' societies purchase finished goods in bulk to eliminate retail middlemen.

Step-by-Step Solution

1
Identify the core financial objective of a Credit and Thrift Cooperative
It mobilizes member savings to provide accessible loan facilities at reasonable interest rates.
Credit and thrift operations specialize in financial aid and savings promotion.
2
Identify the primary role of a Producers' Cooperative
It supports member-producers by organizing common facilities for processing and selling their products.
Primary producers join forces to achieve economies of scale in production and distribution.
3
Identify the main function of a Consumers' Cooperative
It buys goods directly in wholesale quantities to retail them cheaply to members.
Bypassing middlemen reduces retail costs for member-consumers.

Key Concept

Classification and Functions of Cooperative Societies
Estimated Time:45s
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Topics

Cooperative Societies: Types, Principles, Features, and Operation

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