Which of the following is a characteristic of a cooperative business?

A cooperative business is primarily defined by its ownership and operational structure, which is designed to benefit its members rather than to generate profits for outside shareholders. The correct answer highlights that cooperatives provide services specifically tailored to the needs of their members, who are also the owners of the business. This member-focused approach distinguishes cooperatives from traditional businesses, which may prioritize profit above all else.

In a cooperative, the services offered can range from retail goods to agricultural supplies, housing, or financial services, depending on the nature of the cooperative. The emphasis on serving the interests of its members fosters community involvement and enhances the benefits received by those who utilize the cooperative's services.

The other options represent characteristics of different business models. For instance, being owned by shareholders typically applies to corporate structures focused on profit maximization, while managing external investments aligns more closely with investment firms or venture capital entities. Additionally, operating for profit does not reflect the primary aim of cooperatives, which is to meet the needs of their members rather than to maximize profits. Therefore, the unique focus on providing services to members accurately captures the essence of what makes a cooperative business distinctive.