11
QuizMultiple Choice

Business Structures — Quiz

Question 11 • Economics

What happens to earnings in a cooperative?

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

Explanation

A cooperative is owned by its members, who share in the organization’s earnings. Therefore, earnings are shared with member owners, rather than with customers generally or outside middlemen.

AI-written and checked against the verified answer.

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