The citizens of a number of small rural towns have decided to form an association that will allow them to purchase electricity at a much cheaper rate than they are currently paying. This alliance is referred to as a(n)
A) joint venture.
B) syndicate.
C) cooperative.
D) private corporation.
E) S-corporation.

Question

Quizplus · Accepted Answer

The type of association being formed by the citizens of small rural towns where they come together to purchase electricity at a cheaper rate is a cooperative. In a cooperative, individuals or businesses voluntarily come together to form an organization that is jointly owned and operated for their mutual benefit. A cooperative typically operates under the principle of democratic control, where each member has an equal say in the organization's operations and management. Therefore, a cooperative is the best choice for this scenario.

The Citizens of a Number of Small Rural Towns Have