Topic: PROBLEMS OF FINANCIAL MANAGEMENT IN COOPERATIVE SOCIETY AND REMEDIAL MEASURES (A CASE STUDY OF NJABA L.G.A IMO STATE)

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 tradion of their founders, cooperative members believe in the ethical values of honesty, openness, social responsibility and caring for others. Cooperative has play a vital role as a significant part of the global economy, cooperative sector represent a significant contribution to our global economy According to the /CA annual survey, Global 300, the top cooperatives around the world had nearly $ I trillion in revenue in 2005. That is only slightly less than the economy of the world’s 9th largest economy, Canada cooperation create over 100 million jobs more than all the multi-national corporations combined. Cooperative enterprise also contribute to early sector of the economy and are among the largest businesses in the world (ICA, 2008) in Nigeria today, it is known that the nature and contribution of cooperative societies are organ size Normally by troop to the demand to settle one family problem to the other of the members as a group. In this study, the economic development is not equivalent to the total development. The aim of this research is therefore to examine the problems of financial management of cooperative in Njaba L.G.A which make them not to grow well in the economy and also proper some solutions to the problem.

1.2 Statement of Problem

The specified deficiencies and problems ravaging cooperative financial management that has imparted negatively on the general management and performance of the cooperative societies in Njaba L.G.A are - Unable to determine appropriate soirees of funds - Inadequate record keeping of their financial transactions. - Inadequate management of cash. - Wrong investment of funds. - Unable to determine the appropriate capital composition of pastiness.

1.3 Aim and Objectives of the Study

The purpose of this study is to enable us review the financial management problems of cooperative in Njaba local government Area and proffer some remedial measures to the problems as well the objectives are. - To determine the appropriate soirees of funds which will help the cooperatives in Njaba L.G.A float well in their business ventures. - To enable and equip the cooperatives in Njaba on the importance of adequate record-keeping of their business transactions. - To proffer solutions and remedial measures on the management of cash in Njaba L.G.A. for better performance in their business. - To prepare the financial management on the pest way of investing their fund for good productivity and growth of the enterprise. - To menace the problem of capital composition for business in cooperatives in Njaba L.G.A

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