What does the following sentence mean?

"Co-ops are restricted to conducting business with existing members. This limits the number of customers and ultimately, the volume of business transactions."



It means that a cooperative enterprise can only sell to its members. Since the number of members is normally fixed, the business can only grow by selling more to each member. That is not much growth potential.




Co-Ops (a Noun) describes a group of persons who want to LIMIT their buying/selling with other certain types of accepted persons (Could be: group of Churches to buy from only certain businesses or a Co-Op of Police Dept. or any such groups who only want to do business in a limited way. Many Co-ops only buy from certain stores (Costco or Wal-mart) Hope that helps you understand the limits of doing business within a certain scope.




A Co-ops or Cooperative is normally set-up by Students Body (University) or Trade Union for members to purchase their requirement in a cheaper and credit arrangement with score for points earning for exchange of goods, prizes or discount. They bought in bulk puchase price and sell at a lower price than in the general market. Benefits for the members who buy the shares.