COOPERATIONS

DONE BY:

AKILAH PERCH
AKELA PERSAUD
ALTIA PHILLIPS
CHELSEA MORTLEY
 WHAT ARE COOPERATIVES?

A cooperative is an independent (autonomous) association of

persons United voluntarily to meet their common economic,
social, and cultural needs and aspirations through a jointly-
owned enterprise
HOW IS A COOPERATION FORMED
THE PROCESS OF STARTING A COOPERATION IS SIMPLE . A
VOLUNTERY CONSENT OF ATLEAST 10 ADULT PERSONS IN
REQUIRED TO FORM A COOPERATION. THE CAPITAL OF A
SOCIETY IS RAISED FORM ITS MEMBERS THROUGH THE ISSUE
OF SHARES.
 Advantages of a Cooperation
• More capital- there is an easier access to capitals since
there is more members coming together and pooling their
capitals.
• Delegation of tasks becomes easier- since in a
corporation everyone works together to somewhat achieve
a common goal, the delegation of tasks becomes less of a
problem.
• There is a shared decision making
• All profits are shared among the members
Disadvantages of a Cooperation
• Decision making is slow- a cooperation could be difficult to
manage. Even though decisions can be made quickly, the
decision-making process can also become quite slow.
• Risk of producing inefficient products- some businesses
could end up producing low quality and overpriced
products, in that case they can’t go bankrupt, and there isn’t
enough competition to fully understand the price quality.
• Political interference- the cooperation has an
autonomous setup which is seen as favorable, many think
of this as an interference since government are somewhat
involved in such businesses.
• Misuse of power- since there isn’t much competition,
these businesses could function improperly, they might
have less focus on improving the products being offered
and customer service might not be top priority.
• Customer interest ignored- charging too much for goods
that aren’t sufficient for customers.
THE END