Which of the following is NOT a characteristic of a co-operative?

• A. Owned by its members
• B. Aim for profit maximization
• C. Managed democratically
• D. Provides services to its members

Answer: (B)

A co-operative is fundamentally different from traditional businesses in its objectives and structure. The primary aim of a co-operative is to serve the needs and interests of its members rather than to maximize profits. This approach reflects the co-operative's commitment to supporting its members by providing services or products that fulfill their common needs.

Being owned by its members signifies that each member has a stake in the business, whether financially or through governance. This ownership leads to democratic management practices, meaning that members have an equal say in decision-making processes. Furthermore, the focus on providing services to its members highlights that the co-operative prioritizes member welfare over profit generation.

In contrast to profit maximization, which aligns with conventional business goals, a co-operative's aim is more about enhancing member satisfaction and ensuring sustainable services, showcasing its unique role in the economy.