Q.The main purpose for which a consumers co-operative society is formed is to:

A consumers co-operative society works at the retail end of trade, and its whole reason for existing is to protect the ordinary buyer.

Profit-maximisation belongs to a company, lending to a credit society, and manufacturing to a producers' society — so only option (b) describes a consumers society.

A consumers co-operative society is formed by consumers to buy goods of daily use directly from the source and sell them to members at fair prices, thereby removing the profit-taking middleman.

Option-by-option analysis:

• (a) Earn maximum profit for its shareholders — Wrong. A co-operative's motive is service, not maximum profit; the surplus is largely returned to members as a patronage bonus.
• (b) Supply goods to members at fair prices by eliminating middlemen — Correct. This is the very purpose of a consumers society.
• (c) Lend money to farmers at low interest — Wrong. That is the work of a credit co-operative society, not a consumers society.
• (d) Manufacture goods for sale to other traders — Wrong. That describes a producers'/industrial co-operative; a consumers society buys finished goods and retails them.

Students often pick (a) by confusing a co-operative with a joint-stock company. Remember that in a co-operative, service — not profit — is the motive, and a consumers society deals in selling goods to members, not lending or manufacturing.