5
AssignmentMultiple Choice

Business Structures

Question 5 • IL-Economics

Why is a cooperative a good choice for Mark, Emiko, and the other farmers in their area?

Answer
A
The farmer with the largest farm will make the decisions for the group.
B
No one will have to pay taxes on their earnings.
C
The farmers can all be member-owners and share in any profits.
D
The cooperative does not have to be registered with the state.

Explanation

A cooperative is owned and run by its members. Mark, Emiko, and the other farmers can each be member-owners and share in any profits the cooperative earns. It does not automatically exempt them from taxes or state registration.

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