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

In a cooperative, members/customers democratically control their businesses by electing a board of directors. This means that each member has an equal say in the operations of the business, and the board is responsible for making decisions that benefit the collective interest of the cooperative. Limited partnerships involve one or more general partners who control the company and are liable for its debts, while limited partners only invest capital and have limited liability. Cooperatives do not offer limited liability to their members, as they are collectively responsible for the firm's debts. Serving on the board of a cooperative is usually voluntary and not based on a rotating schedule.

In a Cooperative, Members/customers