Which characteristic is most closely associated with a cooperative society?
Correct answer: B. Member control based mainly on one member, one vote
- A. Voting power based entirely on capital invested
- B. Member control based mainly on one member, one vote
- C. Ownership restricted to government departments
- D. Profit distribution only to outside lenders
Explanation
Cooperatives are formed to serve the common interests of their members, and democratic control commonly follows the one member, one vote principle. This differs from companies, where voting power is often linked to shareholding.
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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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