Which statement best describes the ownership structure of a cooperative?

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Multiple Choice

Which statement best describes the ownership structure of a cooperative?

Ownership in a cooperative belongs to its members—people who use the cooperative and join to pursue a common economic, social, or cultural goal and to share in the risks and rewards. This idea is captured by describing the entity as a duly registered association of persons with a common bond of interest who join to achieve a lawful common or social or economic end and share the risks and benefits in accordance with cooperative principles. It emphasizes member ownership and democratic participation, with profits or benefits distributed in line with cooperative practices. The other descriptions imply ownership or control by outside forces—private shareholders, external investors, or government officials—which is not how a cooperative is designed to operate.

Ownership in a cooperative belongs to its members—people who use the cooperative and join to pursue a common economic, social, or cultural goal and to share in the risks and rewards. This idea is captured by describing the entity as a duly registered association of persons with a common bond of interest who join to achieve a lawful common or social or economic end and share the risks and benefits in accordance with cooperative principles. It emphasizes member ownership and democratic participation, with profits or benefits distributed in line with cooperative practices.

The other descriptions imply ownership or control by outside forces—private shareholders, external investors, or government officials—which is not how a cooperative is designed to operate.

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