Who benefits from a co-operative?

• A. Investors
• B. Managers
• C. Consumers who use its services
• D. External shareholders

Answer: (C)

A co-operative is a type of business organization that is owned and operated by a group of individuals for their mutual benefit, often centered around specific services or products. In a co-operative, the primary beneficiaries are the consumers who use its services. This is because co-operatives are structured to meet the needs and preferences of their members, prioritizing member satisfaction and service over profit generation. The members typically share the benefits, such as lower prices, better services, or shared profits, which directly enhances their experience and continues to cultivate loyalty among users.

While investors and external shareholders may benefit in other kinds of business models, a co-operative specifically focuses on member benefits. Managers, while they play a crucial role in the operation of the co-operative, are primarily there to serve the interests of the members rather than to benefit personally from the profits. Therefore, the correct answer highlights that the ultimate goal of a co-operative is to provide value to its consumers.