Which statement correctly defines a cooperative?

Which statement correctly defines a cooperative?

• A. A form of business ownership by a single person.
• B. A corporation with shareholders.
• C. A partnership with four members.
• D. A business organization owned and operated by a group of individuals for their mutual benefit.

Answer: (D)

A cooperative is a business organization owned and operated by a group of individuals for their mutual benefit. This means members have a say in how the business runs and share in its profits based on their participation or use, not based on how much money they invested. This setup contrasts with a form owned by a single person (sole proprietorship), a company owned by shareholders (corporation), or a partnership where a few people jointly own and run the business.

A cooperative is a business organization owned and operated by a group of individuals for their mutual benefit. This means members have a say in how the business runs and share in its profits based on their participation or use, not based on how much money they invested. This setup contrasts with a form owned by a single person (sole proprietorship), a company owned by shareholders (corporation), or a partnership where a few people jointly own and run the business.