Question

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?


A. The farmer with the largest farm will make the decisions for the group.
B. No one will have to pay taxes on their earnings.
C. The farmers can all be member-owners and share in any profits.
D. The cooperative does not have to be registered with the state.

Answer 1

I would go with C. But I'm only 60 percent sure

Answer 2

Answer:

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

Explanation:

The farmers still have to pay taxes if they become a cooperative, but it is significantly less. They also might get better deals at buying supplies when buying everything from the same source and getting discounts by increasing the quantity. Since they're all owners of the cooperative, they can all share the increased profits caused by better deals that the cooperative can arrange.