Which of the following statements best describes cooperatives?
A) Cooperatives have the same liabilities as partnerships.
B) Cooperatives have a limited life span.
C) Cooperatives cannot legally compete with taxable entities.
D) Cooperatives increase their members' buying power.

Question

Quizplus · Accepted Answer

Cooperatives are organizations owned and controlled by their members, who benefit from increased purchasing power and access to markets they may not be able to access on their own. This benefit comes from pooling resources and working together as a group, which leads to the ability to negotiate better prices, achieve economies of scale, and share risks. Unlike partnerships, cooperatives have limited liability, and they can compete with other businesses, including taxable entities.

Which of the Following Statements Best Describes Cooperatives