(a) Explain six functions of wholesalers to manufacturers
(b) State four problems that a cooperative society may likely face.
Explanation
(a) Functions of the Wholesalers to the Manufacturers are:
(i) They gather and provide Market Information (advice) to the manufacturers/finance market research.
(ii) They provide warehouse facilities for goods, thus enabling production to go ahead of demand.
(iii) They finance manufacturers by paying in advance for goods.
(iv) They sometimes provide and pay for advertisement on behalf of the manufacturers.
(v) They buy in bulk and save the manufacturer the problem of selling in bits.
(vi) They help the manufacturer in completing the production by branding, packaging and blending.
(vii) They provide transportation, as a result save the manufacturer the cost of delivery.
(b) Problems of Co-operative society are:
(i) Most societies lack capital to finance their projects
(ii) There is the possibility of embezzlement of funds on the part of officials.
(iii) Most members usually refuse to repay loans granted to them hence the problem of bad debts.
(iv) Most of the members lack education on what goes on in the cooperative society management.
(v) Most members of the management committee lack the expertise in business/poor management.
(vi) Most Co-operative Societies lack proper documentation, which makes tracking of loans and deposits difficult.
(vii) Disagreement/favouritism among executive members could affect the running of the Co-operative Society.