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The lesson defines a cooperative organisation as an association formed by certain types of persons under a specific philosophy. Which combination best matches that definition?
Answer & Solution
Correct answer: D.
1. The lesson defines a cooperative organisation as a voluntary association.
2. Its members are usually of limited means and join for a common economic end.
3. The organisation is democratically controlled, with equitable contributions to capital.
4. Members accept a fair share of risk and benefits, not investor-style dividend extraction.
5. So the description rules out outside-investor, foreign-branch and state-appointed models.
_Source: ICSI CS Executive Paper 3 (Setting up of Business Entities and Closure) — Lesson 1: Choice of Business Organisation, pp. 2-11._
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