What is a key characteristic that differentiates cooperatives from publicly owned companies?

Understanding Cooperative Principles and Profit Distribution

Interactive Video
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Business
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9th - 10th Grade
•
Hard

Patricia Brown
FREE Resource
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10 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
They are owned by their customers.
They are owned by a single individual.
They are owned by the government.
They are owned by private investors.
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which of the following is NOT a primary component of a cooperative?
User-owned
User-controlled
Profit-maximizing
User-benefit
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
How do cooperatives typically distribute profits to their members?
Equally among all members
Based on the amount of business each member does with the co-op
Only to the board members
To external investors
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the term used for profit payments made to cooperative members?
Dividends
Interest
Patronage
Bonuses
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What happens to a member's equity in a cooperative during periods of financial loss?
It decreases.
It increases.
It is transferred to other members.
It remains unchanged.
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
How do cooperatives help reduce transaction costs for their members?
By outsourcing all operations
By hiring more staff
By pooling resources and risks
By increasing individual transactions
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is a significant limitation on cooperative investments compared to other businesses?
They can only accept investments from the general public.
They cannot borrow money.
They cannot accept investments from the general public.
They can only invest in technology.
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