Retail cooperative society

Retail cooperative society

• a large scale retail outlet found in the private sector
• formed by customers to enable bulk buying from manufacturing companies at low prices
• may buy from cooperative wholesale societies
• sells to both members and non-members
• membership is open to customers by paying a subscription or buying shares in the cooperative
• each member is entitled to one vote that is there is democratic control
• members elect a management committee
• members are paid dividends after a year or get a rebate which is an amount of surplus shared in proportion to the amount they would have spent in purchasing goods in the cooperative society
• sells a variety of goods at low prices
• may offer special benefits to members e.g scholarships or death benefits
• members may be trained in business management
• members may buy on credit
• raises a large amount of capital to start the retail outlet
• members exchange information and ideas

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