In a cooperative,members/customers:
A)Democratically control their businesses by electing a board of directors.
B)Are known as limited partners.
C)Each have unlimited liability for the debts of the firm.
D)Take turns serving on the board that manages the company.

Question

Quizplus · Accepted Answer

Cooperatives are democratically controlled by their members/customers who elect a board of directors to manage the business on their behalf. This is a fundamental principle of cooperatives worldwide. Therefore, option A is the correct choice. The other options are incorrect as cooperatives do not have limited partners, each member has limited liability, and there is no rotation system for serving on the board.

In a Cooperative,members/customers