Cooperative societies are formed mainly to

1. Analyze the question The question asks for the main purpose of forming cooperative societies. Look for the option that captures the overall aim, not just one activity.

2. Explain the concept A cooperative society is a voluntary association of people with common needs. They pool resources and work together, and the guiding principle is "each for all and all for each." Members join to improve their economic and social well-being through self-help and mutual assistance.

There are several types, and each does something different:

• Thrift and credit cooperatives: encourage savings and give members loans.
• Consumer cooperatives: supply goods to members at fair prices.
• Producer or marketing cooperatives: help members sell their produce and buy inputs.

3. Work through the options

• A. Assist producers to maximize profits. This applies only to producer cooperatives. Cooperatives also serve consumers, savers and others, and they are not driven mainly by profit.
• B. Encourage thrift and credit among members. This is the job of thrift and credit cooperatives only. It is a specific activity, not the general aim.
• C. Promote and maintain the welfare of members. This covers every type of cooperative, whether the benefit is credit, cheaper goods or better markets. It is the overall purpose.
• D. Break the monopolies of private companies. This can be a side effect, but it is not the main reason cooperatives are formed.

4. Answer

5. Exam tip When a question asks what something is "mainly" formed to do, pick the general, all-encompassing option over the ones describing a single activity. For cooperatives, remember the keyword welfare of members.