Florida Real Estate Practice Exam

A cooperative is a(n) _____.

1. limited partnership

2. LLC

3. not-for-profit corporation

4. sole proprietorship

The correct answer is: not-for-profit corporation

A cooperative is a type of business enterprise that is owned, controlled, and operated by a group of individuals for their mutual benefit. The purpose of a cooperative is not to generate profits for its owners, but to provide goods and services to its members at reasonable prices. A limited partnership is a business structure in which there are two types of partners - general partners, who manage the business and are personally liable for its debts, and limited partners, who invest money but play no role in management. An LLC, or limited liability company, is a hybrid business structure that combines the features of a corporation and a partnership. A sole proprietorship is a business owned and operated by a single individual. Therefore, these options are incorrect because they do not accurately describe a cooperative.