A business owner would most likely create a cooperative instead of buying a franchise because:

• A. they want to operate under a well-known brand with established business practices
• B. they want to avoid collaborating with other business owners
• C. they want shared ownership and democratic decision-making among members
• D. they want to pay ongoing royalties to a parent company

Answer: (C)

Verified step by step guidance

1. Understand the key characteristics of a cooperative: it is an organization owned and operated by a group of individuals for their mutual benefit, emphasizing shared ownership and democratic decision-making.
2. Recognize that a franchise involves operating under a well-known brand with established business practices, often requiring payment of ongoing royalties to a parent company.
3. Compare the motivations for choosing a cooperative versus a franchise: a cooperative appeals to those who want to collaborate and share control, while a franchise appeals to those who want to leverage an established brand and business model.
4. Identify that the desire to avoid collaborating with other business owners contradicts the cooperative model, which is based on collaboration and shared governance.
5. Conclude that a business owner would most likely create a cooperative instead of buying a franchise if they prioritize shared ownership and democratic decision-making among members.