Which of the following correctly describes cooperative sector industries?

Question

Which of the following correctly describes cooperative sector industries?

1. A. Owned and operated by central government agencies.
2. B. Operated solely for export purposes.
3. C. Owned by workers or suppliers sharing profits and losses (Correct answer)
4. D. Maintained by foreign companies with Indian partnerships.

Correct Answer

Option C — Owned by workers or suppliers sharing profits and losses

Detailed Solution & Explanation

The correct answer is Owned by workers or suppliers sharing profits and losses.

Key Points

• Cooperative-sector industries are owned and run collectively by their members — workers, producers or consumers — who share the profits and bear the losses together. AMUL is the classic Indian example.
• They are not central-government undertakings (that's the public sector), not export-only, and not foreign-owned ventures.
• The defining trait is member ownership with shared risk.