Which of the following statements about cooperatives is true?
A)Cooperatives increase their members buying power.
B)Cooperatives have a limited life span.
C)Cooperatives have the same liabilities as partnerships.
D)Cooperatives cannot legally compete with taxable entities.
E)None of the above statements about cooperatives is true.

Question

Quizplus · Accepted Answer

Cooperatives are organizations owned and operated by a group of individuals for their mutual benefit. By pooling resources, they can increase their buying power, allowing members to purchase goods or services at lower prices than they might individually. This is a fundamental principle of how cooperatives operate, distinguishing them from other business models. The other statements are incorrect: cooperatives do not inherently have a limited lifespan, their liability structure can vary and is not necessarily the same as partnerships, and they can legally compete with taxable entities.

Which of the Following Statements About Cooperatives Is True