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State five merits and five demerits of consumer cooperatives

State five merits and five demerits of consumer cooperatives

Answers

Simon
Advantages.
• Goods involved are of high quality
• Consumer cooperatives sells goods to consumers at a fair price.
• There is no involvement of middlemen because they buys goods from producers.
• They can offer credit facilities to their members.
• They can pay interest on capital to the members.
• They sell variety of goods to the members at a place where they can easily get them.
Disadvantages.
• Consumer cooperatives can be easily mismanaged.
• They face stiff competition from large scale incomes.
• They may not afford to hire qualified staff.
• Raising of capital is a problem because majority of their members have low incomes.
• The reluctance of nonmembers to buy from these shops lowers the turn over.
skilled writter answered the question on May 15, 2018 at 05:46

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