Question

Personal Finance and Economics S4 Patterson
Business Structures
Mark and Emiko's Dairy Business
Scenario: Mark and Emiko are both dairy farmers. They would like to work with other dairy farmers in their area to buy feed, fuel, and other supplies at reduced prices. They also think that they can get a better price for their milk if they market their products under the same brand.
Why is a cooperative a good choice for Mark, Emiko, and the other farmers in their area?
Responses

The cooperative does not have to be registered with the state.
The cooperative does not have to be registered with the state.

The farmers can all be member-owners and share in any profits.
The farmers can all be member-owners and share in any profits.

No one will have to pay taxes on their earnings.
No one will have to pay taxes on their earnings.

The farmer with the largest farm will make the decisions for the group.

Answer 1

The farmers can all be member-owners and share in any profits.

Explanation: A cooperative is owned and controlled by its members, who share profits and decision-making. The other statements are incorrect: cooperatives typically must follow state registration rules, members do pay taxes on earnings, and control is shared (often one-member/one-vote), not dominated by the largest farmer.