types of business org, nature and business activity

8/12/2019 Types of Business Org, Nature and Business Activity

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III. MANAGEMENT ASPECTS

Establishing a cooperative as well as its corresponding contents of

leadership and membership would be the subject of thought of some

interested individuals in a community, thus they need to be guided and

helped. Structures like this will play a vital important role to promote economic

and social order. This system will then say the organized way of planning the

production of the mouthwash made of guava, placing on the market the

products produce and managing the resources.

TYPE OF BUSINESS ORGANIZATION

A cooperative is an autonomous association of persons who voluntary

cooperate for their mutual social, economic, and cultural benefit. They have a

bond of interest that joins them together to achieve a lawful common ends.

These are typically based on the cooperative values of self!help, self!

responsibility, democracy and e"uality, e"uity and solidarity. E"uitable

contributions must be made to come up with the capital re"uired as well as

the accepting a fair share of the risks and benefits of the undertaking in

accordance with universally accepted cooperative principles.

The purpose of a cooperative is not to make a profit for itself, but to

improve each member#s life situation. This is a mi$ of self! help and mutual

aid that had made it an international force of good. %owever, members of

cooperatives do make a profit by selling their product and&or service to

customers who are not cooperative members.

NATURE AND CHARACTER OF COOPERATIVES

As an association of people and as business enterprises, 'ooperatives


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can be distinguished from other organizations by their nature and character.

They can be balanced by the interests of the community or may be classified

as worker, consumer, producer, purchasing, housing cooperatives and many

other types of which are created to label their ownership structure. 'o!

operatives are a fle$ible business model. They can be set up in different ways,

using different legal structures, depending on what works for the members.

The primary objective of every cooperative is to provide goods and services

to its members that would enable them to attain increased income and

savings, investments, productivity, and purchasing power and also to promote

among them e"uitable distribution of net surplus through ma$imum utilization

of the economies of scale, cost!sharing and risk!sharing but not to conduct

the affairs of the cooperative for charitable purposes because 'o!operatives

want to trade successfully as they are businesses, not charities, after all.

'ooperative shall provide ma$imum economic benefits to its members,

nurture them efficient ways of doing things in a cooperative manner, and

propagate and enhance cooperative practices and new ideas in business and

management and allow the lower income groups to increase their ownership

in the wealth of this nation. (embers join cooperative because they need their

services. 'ooperatives however in serving the members, do not act as a

charitable organization. The members are aware that the benefits they derive

from their association come from their contributions and are the result of their

mutual inclination to help one another, derived from the "uote that

)'ooperatives are not for profit not for charity but for service*. (embers can

often do better by working together and sharing the profit is a way to keep it

fair and make it worthwhile. And also economic benefits are distributed

proportionally to each member+s level of participation in the cooperative, for

instance, by a dividend on sales or purchases, rather than according


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to capitalinvested.

TYPE OF BUSINESS ACTIVITY

The cooperative established will be a producer#s cooperative type.

'ooperative 'ode of the hilippines defines roducers 'ooperative as one

that undertakes joint product whether agricultural or industrial, voluntary

association of at least - individuals&persons for the purpose of mutually

assisting one another in the procurement of raw materials through skill,

physical or chemical process into finished products and in the marketing of

the same. The co!op members are the independent producers, and they man

cooperate in many possible ways. They may buy the inputs, e"uipment, and

insurance, hire managers and sales people, market and advertise together, or

operate storage or processing facilities or a distribution network. The broad

objectives of producer#s cooperative are to increase the income and

purchasing power of its members and to establish and promote cooperation

as a techni"ue for improving the social and economic status of the members.
http://en.wikipedia.org/wiki/Capital_(economics)http://en.wikipedia.org/wiki/Capital_(economics)

types of business org, nature and business activity

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