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    PracticeACCAACCA BT — Business & Technology Practice Exam 1Question 05
    Easy2 marksMultiple Choice
    Syllabus A: The business organisation and its external environmentSection ASyllabus AOrganizational Types

    ACCA · Question 05 · Syllabus A: The business organisation and its external environment

    AgriGrow is an organization owned entirely by the farmers who supply it with raw wheat. The organization processes the wheat and shares the profits among the farmers based on the volume they supplied. What type of organizational structure does AgriGrow represent?

    Answer options:

    A.

    A public limited company

    B.

    A cooperative

    C.

    A non-governmental organization (NGO)

    D.

    A joint venture

    How to approach this question

    Look at the ownership structure and how profits are distributed. Ownership by suppliers/members points to a specific model.

    Full Answer

    B.A cooperative✓ Correct
    Cooperatives are user-owned and user-controlled businesses that distribute benefits on the basis of use or volume supplied, rather than on the amount of capital invested.

    Common mistakes

    Assuming it's a joint venture. Joint ventures are usually between two distinct corporate entities for a specific project.
    Question 04All questionsQuestion 06

    Practice the full ACCA BT — Business & Technology Practice Exam 1

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