A cooperative society is primarily established to:
Correct answer: B. Promote the common economic interests of its members
- A. Maximise returns for outside investors
- B. Promote the common economic interests of its members
- C. Transfer all business risk to creditors
- D. Replace every private business in a market
Explanation
A cooperative society is formed to serve the shared economic interests of its members through mutual help and democratic participation. Its central purpose is member benefit rather than maximising returns for outside investors.
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About Nature and Forms of Business Organisation
Business organisation combines people, capital, materials and entrepreneurship to produce goods or services and earn profit, while also meeting customer and social needs. Coverage includes sole proprietorships, partnerships, companies and cooperatives, with comparisons of ownership, liability, control, profit sharing, continuity and legal status.
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