Cooperatives and Companies

What is a Cooperative?

• A person, partnership, or corporation engaged in commerce, manufacturing, or a service; profit seeking enterprise or concern.

• A form of business organization that is owned and run jointly by its members, who share the profits or benefits.

• A form of business organization in which the owners have shares in a separate legal entity that itself can own assets and borrow money.

• A form of business organization similar to a partnership but offering its owners the advantage of limited financial liability.

A_____ is a legal business entity created under state law that is owned and operated for purpose of benefiting its members who use its services.

• company

• cooperative

• sole proprietorship

• partnership

What does cooperation mean?

• having the same historical experiences

• sharing the same culture

• speaking the same language

• working together to achieve goals

Which is not a feature of a cooperative?

• Open membership

• Democratic Control

• Unlimited interest on shares

• Distribution of profits

Member-owners of marketing cooperatives do what?

• Members work together to provide Financial Services.

• Work together to market and sell products they produce.

• Members work together to get lower prices.

• Work together to access affordable utilities.

What type of cooperatives are owned by the people who work for the company?

• Worker cooperatives

• Producer cooperatives

• Consumer cooperatives

• Purchasing cooperatives

Private Limited Companies are owned by

• Sole Traders

• Partners

• Shareholders

• The Government

Private Limited Companies have

• Limited Liability

• Unlimited Liability

Private Limited Companies have to make Financial Information Public

• True

• False

Which 2 of these types of organisations must share their profits?

• Sole Trader

• Private Limited Company

• Partnership

• All of the above