A sporting goods store is owned by its user members. The store is run

QUESTION

A sporting goods store is owned by its user members. The store is run by managers hired by a board of directors that was elected by shareholder members. What kind of company is the store?

A) a limited liability partnership
B) a limited liability company
C) a B corporation
D) a cooperative
E) a franchise

ANSWER

Answer: D
Explanation: D) A cooperative, or co-op, is a corporation owned by its user members, who have pooled their resources for their mutual benefit. Generally speaking, the shareholders in a cooperative elect their own board of directors, which then hires managers to run the company.