Which statement best describes a cooperative partnership?

• A. The business is owned by external investors
• B. The business is managed by a single owner
• C. The business is owned and managed by the people that work there, and profits are allocated proportionally to work performed
• D. Profits are distributed by the government

Answer: (C)

A cooperative centers on ownership and control by the people who work there or use the service, with profits shared among those members. This structure means workers actually own the business and have a say in how it’s run, and the economic rewards go back to the members based on their participation or usage. That democratic, member-owned model is what makes the statement fit a cooperative.

Think of the other possibilities as describing different kinds of business setups. External investors owning the business points to a company driven by shareholder interests rather than member governance. A single owner running the business describes a sole proprietorship with concentrated control and limited distribution of profits. Profits distributed by the government suggests a state-controlled arrangement, not a member-owned cooperative.