8
QuizMultiple Choice

Business Structures

Question 8 • IL-Economics

What happens to earnings in a cooperative?

Answer
T
They are used to pay middlemen for services.
T
They are shared with member owners.
T
They are used to buy more stock for members.
T
They are shared with customers through dividends.

Explanation

A cooperative is owned by its members, who use or support the business. Any earnings left after expenses are generally returned to those member owners, often based on how much they used the cooperative. So the earnings are shared with member owners, not outside customers.

AI-written and checked against the verified answer.

Previous
Next