THE CRITICAL REVIEW OF THE SOURCES OF FUNDS OPEN TO COOPERATIVE SOCIETY IN IMO STATE.(A CASE STUDY OF SOME SELECTED PRIMARY COOPERATIVE SOCIETY IN IMO STATE.)

ABSTRACT

This is no doubt that finance is the blood life of any business enterprise even cooperative society.

In the truest concept and practice, finance is concerned with money, and is involved in cooperative societies for the establishment or formation.

This research work tends to look into the sources of funds opened to cooperative, how cooperative source for funds, the importance of sourcing for funds, why cooperative are organized, origin or cooperative, sparking up of cooperative, organizing step in cooperative and factors that could affect the formation of cooperative society.

TABLE OF CONTENTS

TITLE PAGE——————————————–i

CERTIFICATION —————————————ii

DEDICATION——————————————iii

ACKNOWLEDGEMENT———————————iv

ABSTRACTS——————————————–v

TABLE OF CONTENTS———————————vi

CHAPTER ONE

1. Introduction—————————————1
   1. background of the study—————————5
   1. Statement of problem—————————–6
   1. Objectives of the study.—————————-6
   1. Research question———————————-7
   1. Significance of the study—————————8
   1. Scope of the study ——————————–8
   1. limitation  of the study—————————-9
   1. Definition of terms.——————————–10

CHAPTER TWO

• Review  of related Literature—————————–12
  • Origin of cooperative——————————–13
  • Sparking of a cooperative ————————–15
  • Why cooperative are organized ———————16
  • Organizing steps in cooperative ——————–18
  • Sources of funds opened to cooperative ———-20
  • The importance of finance in cooperative ———26
  • The reason for joining cooperative —————-27
  • Factors that could affect/influence the establishment of cooperative —————————————–31

CHAPTER THREE

• Research Methodology——————————–33
  • Research design———————————-33
  • Sources of data collection————————34
  • Rationale for choice of variables—————–34
  • Instrument for data collection——————–35
  • Description of data———————————36
  • Validity and reliability of measuring instrument-37

CHAPTER FOUR

• Presentation and Analysis of data———————-39
  • Introduction—————————————-39
  • Analysis according to research question ——–40
  • Data presentation and classification————-44

CHAPTER FIVE

• Summary of findings, conclusion and recommendation–47
  • Summary of findings———————————47
  • Conclusion——————————————–48
  • Recommendation————————————-49

    Bibliography————————————–51

                   Appendix—————————————–52

                  Questionnaire————————————53

CHAPTER ONE

1.0 INTRODUCTION

This project research tends to look at the sources of funds open to cooperative society in Imo state, a case study of some selected primary cooperative societies in Imo state.

       Observation and questionnaire shows the sources of funds opened to cooperative society, and emphasis is placed on the sources. The existence of a business enterprise to a large extent depends on the availability of fund both for initial take off and for running the business. Enough capital outlay is needed to buy assets (e.g cars, building, equipment etc), and for handling daily needs (e.g stationeries, paying wages and salaries etc). lack of fund can put a firm on a standstill. The capital requirement of business varies from firm to firm.

       Financing is the act of raising and using of funds by individuals, cooperatives, firms and governmental organizations for their day to day operations, running and management of a business undertaking as opted by Okeke (2006). As a discipline, finance is merely a body of facts, principles and theories which deal with the raising (e.g by borrowing) and using (e.g by investing) of money by individuals, cooperatives, firms and governmental organizations. In the truest concept and practice, finance is concerned with money (that is the life blood of any business enterprise) be it cooperatives, partnerships, limited liability companies etc.

       Adeyeye (1978), implied that no business organization can thrive and survive without constant and adequate flow of finance . He opted that in business financing there are three ways of going about it, and is as follows;

• By short term
• By intermediate term
• By long term

To further explain, short term is the type of borrowing that is repayable within one year intermediate is more than one year but less than 5 years, while long term is 5 years and above.        A key consideration in choosing the source of cooperative finance is to strike a balance between equity and debt to ensure the fund structure suits the business. The main difference between borrowed money (debt) and equity and that bankers request interest payments and capital requirements, and the borrowed fund is usually secured on business assets or the personal assets of shareholders/ directors. The overall objective in raising funds in cooperatives to excessive high borrowings, but without unnecessarily diluting the share capital.