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Exercises · Q1

Q.The challenge in which politicians intrude into the management and working of a co-operative society, so that decisions are guided by political rather than economic considerations, is called:

(a) Financial weakness
(b) Political interference
(c) Lack of professional management
(d) Government over-regulation
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✓ Free question

The challenge described — politicians and politics intruding into a society's management so that decisions are guided by political rather than economic considerations — is the definition of political interference.

Option-by-option analysis:

  • (a) Financial weakness — incorrect. This refers to shortage of capital and poor financial health (low share capital, overdues, losses), not to the entry of politicians.
  • (b) Political interference — correct. Large co-operatives control money, jobs and members, which makes them bases of political power; when politicians capture and run them for political ends, decisions become political rather than economic, harming efficiency, finances and democratic control.
  • (c) Lack of professional management — incorrect. This is about committee members and staff lacking business skills, a different problem (though weak management can accompany political control).
  • (d) Government over-regulation — incorrect. This is excessive control by the government/co-operative department, not intrusion by politicians into the society's own management.
✓Final answer

Option (b) — Political interference — is correct.

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