Lesson Notes By Weeks and Term - Senior Secondary School 2

Term: 1^st Term

Week: 9

Class: Senior Secondary School 2

Age: 16 years

Duration: 40 minutes of 2 periods each

Date:       

Subject:    Commerce

Topic:-      Cooperative societies II

SPECIFIC OBJECTIVES: At the end of the lesson, pupils should be able to

1. State the advantages and disadvantages of cooperative society
2. Discuss the similarities and differences between cooperative society and limited liability company

INSTRUCTIONAL TECHNIQUES: Identification, explanation, questions and answers, demonstration, videos from source

INSTRUCTIONAL MATERIALS: Videos, loud speaker, textbook, pictures

INSTRUCTIONAL PROCEDURES

PERIOD 1-2

PRESENTATION	TEACHER’S ACTIVITY	STUDENT’S ACTIVITY
STEP 1 INTRODUCTION	The teacher reviews the previous lesson on cooperative society	Students pay attention
STEP 2 EXPLANATION	She states the advantages and disadvantages of cooperative society	Students pay attention and participates
STEP 3 DEMONSTRATION	She discusses the similarities and differences between cooperative society and limited liability company	Students pay attention and participate
STEP 4 NOTE TAKING	The teacher writes a summarized note on the board	The students copy the note in their books

 

NOTE

ADVANTAGES OF COOPERATIVE SOCIETY

1. Low cost advertising
2. it encourages the joint marketing of products
3. there is a collective use of the factors of production
4. it encourages a good saving habit among members
5. provision of loan facilities to members
6. they operate on a democratic basis
7. Their profit is exempted from tax
8. they can pool resources together in order to invest

 

DISADVANTAGES OF COOPERATIVE SOCIETY

1. Misappropriation and embezzlement of funds
2. High level of illiteracy among members
3. Insufficient capital
4. Inefficient management
5. Low return on investment
6. Unnecessary government interference
7. Problem of loan recovery

 

SIMILARITIES AND DIFFERENCES BETWEEN COOPERATIVE SOCIETY AND LIMITED LIABILITY COMPANY

SIMILARITIES

1. Both have separate legal personality distinct from their members
2. The liability of members is limited to the amount of money contributed by members and shareholders.
3. Both are registered before commencement of operations. A company will be registered under company and Allied Matters and a cooperative society under cooperative law.
4. They normally hold annual general meeting to discuss about the organization and to present the financial statements.
5. Both are mandated to prepare financial statements and submit to the relevant government agencies.
6. All members are entitled to dividends

DIFFERENCES

	COOPERATIVE SOCIETY	LIMITED LIABILITY COMPANY
1	Sharing of profit is based on patronage.	Profit sharing is based on share-holding.
2	Profit of the cooperative society is not subject to income tax.	Profit is subject to income tax.
3	It is registered under cooperative laws.	It is registered under company and Allied matters.
4	The primary aim is to cater for member’s welfare.	The primary aim is to maximize profit.
5	There is payment of registration fees by members.	There is no payment of registration fees by members.
6	Members contribute capital of society.	Source of finance is from share capital.
7	It is controlled and managed by elected committee.	Management is by the board of directors.

 

EVALUATION:   1. State the advantages and disadvantages of cooperative society

2. Discuss the similarities and differences between cooperative society and Limited liability company

CLASSWORK: As in evaluation

CONCLUSION: The teacher commends the students positively