What term describes a business owned by the members it serves and managed in their interest?

What term describes a business owned by the members it serves and managed in their interest?

• A. Market Penetration
• B. Corporate Social Responsibility
• C. Company/ Corporation
• D. Cooperative

Answer: (D)

Cooperatives are businesses owned and controlled by the people who use their services or work there, and they’re run to serve the members’ interests. Members usually have an equal say in decisions (often one member, one vote), and any surplus is returned to members or reinvested for the benefit of the group. This ownership-and-control arrangement sets cooperatives apart from the other options. Market penetration describes a growth strategy to increase market share in existing markets, not a particular ownership structure. Corporate social responsibility is about a company’s obligations to society and stakeholders, not how the business is owned or governed. A company or corporation is typically owned by shareholders and driven by return on investment, with governance that isn’t based on member control.

Cooperatives are businesses owned and controlled by the people who use their services or work there, and they’re run to serve the members’ interests. Members usually have an equal say in decisions (often one member, one vote), and any surplus is returned to members or reinvested for the benefit of the group. This ownership-and-control arrangement sets cooperatives apart from the other options.

Market penetration describes a growth strategy to increase market share in existing markets, not a particular ownership structure. Corporate social responsibility is about a company’s obligations to society and stakeholders, not how the business is owned or governed. A company or corporation is typically owned by shareholders and driven by return on investment, with governance that isn’t based on member control.