BMIS – L1 – SA – Q1.3 – The business organisation and its stakeholders

Co-operatives are owned by their shareholders.

A   True

B   False

B

Explanation:
Co-operatives are owned by their members, not shareholders. Members typically include customers, employees, or other stakeholders who use the co-operative’s services or products and share in its profits or benefits. Unlike companies owned by shareholders who invest capital, co-operatives operate on a membership model. Therefore, the statement is false, making B the correct answer.