Q. Consider the following statements:
1.Corporations are investor-owned entities whereas Cooperatives are organisations owned by members.
2.The liability of members of a corporation is limited but the liability of the members of cooperative society is not limited.
3.Cooperatives are formed as a business organization to make profits while corporation are formed by members who want to accomplish a common goal together which may be business oriented or not.
4.Shares of a corporation are transferable while those of a cooperative are not..
Which of the statements given above are correct?

[A] 1, 3 and 4 only

[B] 2, 3 and 4 only

[C] 1 and 4 only

[D] 1, 2 and 4 only

Answer: D
Notes:

Explanation –

Statement 1, 2 and 4 are correct. Corporation are investor-owned entities whereas Cooperatives are organisations owned by members. The liability of members of a corporation is limited but the liability of the members of cooperative society is unlimited. Shares of a corporation are transferable while those of a cooperative are not.

Statement 3 is incorrect. Corporation are formed as a business organization to make profits while cooperatives are formed by members who want to accomplish a common goal together which may be business oriented or not.

Source: ForumIAS