Flashcards - Quizz on coopts and MFIs

Front

What is the main purpose of cooperatives?

Back

To serve and benefit their members

Front

How do cooperatives typically manage ownership and voting rights?

Back

Ownership is shared among the members, and each member generally has one vote.

Front

How are important decisions generally made in a cooperative?

Back

Through votes where each member has an equal voice.

Front

How does leadership in a cooperative differ from that in a traditional business?

Back

The leaders of the cooperative implement policies approved by the members, not just by the management.

Front

What additional services can increase the effectiveness of a microcredit?

Back

Provide training in business and finance.

Front

How does the group lending model support the effectiveness of the loan?

Back

It creates responsibility/accountability through social capital and mutual support.

Front

Why are microfinance loans typically unsecured (without collateral)?

Back

To allow access to low-income individuals without traditional assets.