Which of the Following Is Correct with Regard to Co-Operatives

Multiple Choice

Which of the following is correct with regard to co-operatives?

A) Co-operatives are not allowed to deduct patronage refunds to members out of before-tax income.
B) Members have an incentive to invest in equity capital of the co-operative.
C) Voting and financial control of the co-operative is typically held by a few wealthy individuals.
D) Double taxation affects co-operatives more negatively than corporations.
E) The democratic voting arrangements and dividends based purely on patronage discourage some entrepreneurs from forming or joining a co-operative.