THE ROLE OF FINANCIAL MANAGEMENT IN A CO-OPERATIVE ORGANIZATION
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
So far, we have learnt about sole proprietor shop, partnership and joint stock company and different forms of business organization. It has been noticed that besides many differences among them in respect of their formation, operation, capital contribution as well as habilitation, one common similarity is that all endanger in business acridities to earn profit. Without profit it is impossible for them to survive and grow. But there are certain organizations which undertake business activities with the prime objectives of providing service to the members. Although some amount of profit is essential to survive in the market, their main intention is not to generate profit and grow. They pool available resources from their members, utilize the same in the best possible manner, and also the benefits are shared by the members, IKabua (1984: 271).
It is an autonomous association of persons united vohuntanty to meet their common economic, social and cultural needs and aspirations through a jointly owned and democratically controlled enterprise and are based on the values of self-help, self responsibility, democracy, equality, equity and solidarity, ICA (1995). In the tradition of their founders, cooperative members believe in the ethical values of honesty, openness, social responsibility and caring for others.
Cooperative has played a vital role as a significant part of the global economy, cooperative sector represents a significant contribution to
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