10 organisation_cooperatives

10 organisation_cooperatives - can still face of number of...

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tutor2u GCSE Business Studies Business organisation – Cooperatives A co-operative is where a number of individuals or businesses work together to achieve a common purpose. They are normally formed so individuals and small businesses can benefit from being part of a larger group, meaning they have more power to buy or bargain. There are three main types of co-operatives: X Retail co-operatives X Marketing or trader co-operatives X Worker co-operatives A retail co-operative is probably the most familiar co-op. The Co-Op shops and Leo Hypermarkets are a regular sight in the high street. The objectives of a co-op tend to set them apart from other businesses. The objectives are normally more focused on the members of the co-operative, the local community and the world community. Though profits are required to enable them to reinvest in their business, they will not be a primary objective. Though co-operatives exist to overcome some of the trading difficulties faced by small businesses, they
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Unformatted text preview: can still face of number of problems in their operation: X The system of one member one vote in some societies means a long, drawn out decision-making process X Co-operatives may find it difficult to raise finance since banks are not so willing to lend them money because their main aim is not to make a profit X Idealistic and ethical aims may not be agreeable with all members, so creating unrest and disharmony X The aims held by many co-operatives may not lead to profits in the long run (though many co-op shops will continue to exist at a loss because the owners feel they are providing an important service to the community.) Key Links for GCSE Business Studies http://www.tutor2u.net/ Discussion Board for GCSE Business Studies Other GCSE Business Studies Revision Notes and Resources from tutor2u Tutor2u GCSE Business Online Store...
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This note was uploaded on 05/20/2010 for the course BUSINESS Business O taught by Professor N/a during the Spring '10 term at Open Uni..

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