Which term describes a business organization jointly owned and operated by a group of individuals for their mutual benefit?

• A. Cooperative
• B. Nonprofit organization
• C. Labor force
• D. Offshoring

Answer: (A)

A cooperative is a business form owned and operated by the people who use its services or belong to it, for their mutual benefit. This structure means members have a say in decisions and share in the profits or savings, aligning ownership and control with the people it serves. That democratic, member-owned setup is what makes a cooperative the right term for a group jointly owning and operating a business for their own gain.

Nonprofit organizations are driven by a mission and reinvest surplus toward that mission rather than distributing profits to members. The labor force is simply the people who work for a business, not a type of business organization. Offshoring refers to moving production to another country, not a form of ownership or governance.