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Co-operative Companies
In a co-operative company, capital is raised
by each member buying £1 shares, up to a limit of 5000 individual
shares. The members of the co-operative own the company.
Advantages
- This
type of business offers competitive prices.
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The dividend on purchases and the interest on shares make their
goods even cheaper.
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A range of services (for example The Co-Op Bank) are offered
to members.
Disadvantages
- There
is a danger of poor planning, management and financial control.
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Few people have faith in co-operatives.
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Co-operatives can only offer a restricted range of goods. Famous
brands are not (usually) stocked.
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The owner must keep proper accounts.
Examples
of Co-operatives
- Vineyards
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The Co-operative Society
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