Which of the Following Statements Best Describes Cooperatives

question 114

Multiple Choice

Which of the following statements best describes cooperatives?

• A) Cooperatives have the same liabilities as partnerships.
• B) Cooperatives have a limited life span.
• C) Cooperatives cannot legally compete with taxable entities.
• D) Cooperatives increase their members' buying power.

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Definitions:

Herfindahl Index

A measure of the concentration and competitiveness of an industry; calculated as the sum of the squared percentage market shares of the individual firms in the industry.

Market Share

The proportion of total sales or business a company secures within a particular market, compared to its competitors.

Conglomerate Merger

A business combination of two or more unrelated companies, usually to diversify product lines or markets.

Vertical Merger

The merger of one or more firms engaged in different stages of the production of a particular final good.