What type of organization is owned and managed by individuals who use its services?

What type of organization is owned and managed by individuals who use its services?

• A. Co-operative
• B. Corporation
• C. Partnership
• D. Sole Proprietorship

Answer: (A)

A co-operative is a type of organization that is owned and managed by individuals who use its services. This structure is centered around the principle of mutual benefit and collective decision-making where members come together to fulfill common needs and goals. Each member typically has an equal say in how the co-operative operates, fostering a sense of community and shared ownership. For example, in a consumer co-operative, members purchase goods and services from the organization, which is run for their benefit. Decisions regarding the organization are made democratically, often with members electing a board of directors to oversee operations and represent their interests. This model contrasts with other types of organizations where ownership, control, and profit distribution may not directly align with the interests of those using the services—such as in corporations, where shareholders aim for profit maximization.

A co-operative is a type of organization that is owned and managed by individuals who use its services. This structure is centered around the principle of mutual benefit and collective decision-making where members come together to fulfill common needs and goals. Each member typically has an equal say in how the co-operative operates, fostering a sense of community and shared ownership.

For example, in a consumer co-operative, members purchase goods and services from the organization, which is run for their benefit. Decisions regarding the organization are made democratically, often with members electing a board of directors to oversee operations and represent their interests. This model contrasts with other types of organizations where ownership, control, and profit distribution may not directly align with the interests of those using the services—such as in corporations, where shareholders aim for profit maximization.