Cooperative Business Characteristics Quiz

Play an AI-generated podcast conversation about this lesson

What is one of the advantages of cooperatives mentioned in the text?

High membership fees

Limited liability (correct)

Lack of government support

Inefficient management

Why is the membership fee in cooperatives kept low?

To offer high salaries to management

To make a profit

To discourage government support

To encourage anyone to join (correct)

What aspect of cooperatives distinguishes them from their members?

Lack of government subsidies

High taxes

Corruption

Separate legal entity (correct)

What type of liability do members have in a cooperative business?

Limited liability Signup and view all the answers

What kind of support does the government provide to cooperatives?

Lower interest loans and subsidies Signup and view all the answers

What is one of the disadvantages of cooperatives mentioned in the text?

Limited capital raising funds Signup and view all the answers

Which of the following is an advantage of cooperatives?

Democratic control and voluntary membership Signup and view all the answers

What is the process of forming a cooperative?

It is initiated by a group of individuals with a common interest Signup and view all the answers

Which of the following statements is true about cooperatives?

Members have equal voting rights, regardless of their investment Signup and view all the answers

What is the principle of limited liability in cooperatives?

Members' liability is limited to their capital contribution Signup and view all the answers

How do governments support cooperatives?

Governments provide tax incentives and legal frameworks Signup and view all the answers

Which statement best describes cooperatives?

Cooperatives operate based on voluntary and open membership Signup and view all the answers

What does business ethics refer to in the context of the business world?

Operating beyond compliance with laws Signup and view all the answers

What is the main focus of social responsibility in business?

Engaging in activities that benefit stakeholders Signup and view all the answers

Which type of businesses aim to operate in a morally responsible manner?

Those that uphold strong business ethics Signup and view all the answers

What does limited liability refer to in business organizations?

Personal assets are at risk in business debts Signup and view all the answers

How do socially responsible businesses differ from profit-focused ones?

They engage in activities benefiting stakeholders and the community Signup and view all the answers

What role do strong business ethics play in organizations?

Promoting fairness, integrity, and accountability Signup and view all the answers