Cooperative Business Characteristics Quiz
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Questions and Answers

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?

    <p>Limited liability</p> Signup and view all the answers

    What kind of support does the government provide to cooperatives?

    <p>Lower interest loans and subsidies</p> Signup and view all the answers

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

    <p>Limited capital raising funds</p> Signup and view all the answers

    Which of the following is an advantage of cooperatives?

    <p>Democratic control and voluntary membership</p> Signup and view all the answers

    What is the process of forming a cooperative?

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

    Which of the following statements is true about cooperatives?

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

    What is the principle of limited liability in cooperatives?

    <p>Members' liability is limited to their capital contribution</p> Signup and view all the answers

    How do governments support cooperatives?

    <p>Governments provide tax incentives and legal frameworks</p> Signup and view all the answers

    Which statement best describes cooperatives?

    <p>Cooperatives operate based on voluntary and open membership</p> Signup and view all the answers

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

    <p>Operating beyond compliance with laws</p> Signup and view all the answers

    What is the main focus of social responsibility in business?

    <p>Engaging in activities that benefit stakeholders</p> Signup and view all the answers

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

    <p>Those that uphold strong business ethics</p> Signup and view all the answers

    What does limited liability refer to in business organizations?

    <p>Personal assets are at risk in business debts</p> Signup and view all the answers

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

    <p>They engage in activities benefiting stakeholders and the community</p> Signup and view all the answers

    What role do strong business ethics play in organizations?

    <p>Promoting fairness, integrity, and accountability</p> Signup and view all the answers

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