PRC-3 · Chapter 2 · Question 28 of 61
A group of dairy farmers form an organization to collectively process and market their milk, sharing the profits based on how much milk each farmer contributed rather than capital invested. What type of business is this?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) A cooperative society
Explanation
A cooperative is an autonomous association formed voluntarily by people to meet their mutual economic needs, often distributing benefits based on usage/contribution.
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