In which of the following business units are profit shared
In which of the following business units are profit shared
- A) Public enterprise
- B) Partnership
- C) Co-operative
- D) Public Limited Company
Correct Answer: C) Co-operative
Explanation
A co-operative is a type of business unit where individuals come together voluntarily to form a business for their mutual benefit. In a co-operative, the members work together and share the profits of the business. This means that when the co-operative makes a profit, it is distributed among the members according to their level of participation or investment in the business.On the other hand, public enterprises are government-owned businesses that are established to provide essential goods and services to the public. They are not structured to share profits with individuals.
Partnerships are formed when two or more individuals come together to start a business. In a partnership, the profits are shared among the partners based on their agreed-upon sharing ratio.
Public Limited Companies are businesses that are owned by shareholders and their shares are traded on the stock exchange. The profits of public limited companies are usually distributed among the shareholders in the form of dividends, but not shared among individuals in the same way as in a co-operative.
Therefore, the correct answer is Option C: Co-operative.