Which business form is owned and operated by a group of individuals for their mutual benefit, often emphasizing member ownership?

• A. Corporation
• B. Partnership
• C. Cooperative
• D. Sole Proprietorship

Answer: (C)

Ownership and control by the people who use its services defines this form. A cooperative is owned and operated by a group of individuals—its members—who join to meet common needs and share the benefits. Decisions are typically made democratically, with each member having a say in how the business is run, regardless of how much each member uses it. Profits or savings are returned to members based on their participation or usage, emphasizing mutual benefit rather than earning profits for external investors. This contrasts with a corporation (owned by shareholders seeking returns), a sole proprietorship (owned by one person), and a partnership (owned by two or more individuals but not necessarily focused on member ownership).