Question
27. Which indindual would likely be most interested in participating in a business organized as a cooperative? a. Ethan is interested in the idea of combining his time and resources with others to operate a business providing a good or sarvice that they all will usa b. Renee looks to be an owner of a business and share in its profits, but does not want to take an active role in managing the company or participating in its dally operations c. Maunco wants to work for a government-owned business because he believes government ownership ensures a more equitable distribution of income and wealth d. Isadora prelers to work for a charitable organization that emphasizes helping people who are less fortunate than she is.
Solution
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AlphonseMaster · Tutor for 5 years
Answer
The answer is **a. Ethan is interested in the idea of combining his time and resources with others to operate a business providing a good or service that they all will use.**<br /><br />Here's why:<br /><br />A **cooperative (or co-op)** is a business owned and controlled by its members, who typically use its services or buy its products. The primary purpose of a cooperative is to benefit its members by providing goods or services at a lower cost or by pooling resources to increase bargaining power. Ethan's interest in combining resources and using the services aligns perfectly with the cooperative model.<br /><br />Let's look at why the other options are incorrect:<br /><br />* **b. Renee:** Renee's desire for ownership and profit-sharing without active participation describes a passive investor, more suited to a traditional corporation structure where she could buy stock.<br />* **c. Maunco:** Maunco's interest in government-owned businesses stems from a belief in equitable distribution, not the cooperative model. While some government-owned entities might share similarities with co-ops, they are fundamentally different in their structure and purpose.<br />* **d. Isadora:** Isadora's preference for working in a charitable organization reflects a desire to help others, which is different from the primary purpose of a cooperative, which is to benefit its members economically.<br />
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