I attached 3 discussion posts for each of them you should Your 2-paragraph posting should be written in the following format: Edit the posting for spelling, grammar, and technical writing. List the c

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BUAD455.50A

Module 3 Exercise

Date

I personally think cooperatives are a great business idea in general, but I personally don’t think I would choose to start or join a cooperative if I wanted to start a business. I think there are many advantages to a cooperative like lower costs for an individual, further reach, and decreased individual liability. The reason I personally wouldn’t want to start a cooperative is control. If you are in a cooperative, then you don’t have full control and you can’t make any final decisions about the business on your own. I would much rather start a business in which I can make every decision by myself and do things the way I want. I feel like the reason many people start their own business is because they want to work for themselves. I imagine a cooperative wouldn’t work that way. I would personally say though that starting a business as a cooperative is less risky and there is a greater chance for success.

The biggest advantage to a cooperative is that the costs of business will be split up and therefore an owner will only be paying a fraction of the costs they would be if they owned the business by themselves. This also could mean, depending on the owners, that there is exponentially more capital available for the business. Having multiple owners putting in an equal amount of money will get the business a lot more initial capital than if there was just one owner contributing their money to the business. Another advantage to a cooperative is a bigger reach. Having multiple owners can create a large network of customers who want to support their friends or family. This is a significantly better reach than one individual person trying to market an entire company on their own. The advantages to a cooperative bring exponentially higher chances for success than a sole proprietorship would.

The disadvantages to a cooperative start with control as discussed earlier. When multiple owners will equal power, then an owner doesn’t have any power to decide on their own and to me this is a big deal. If I am putting money and work up to start a business, I want to know that I can control the direction the business goes. Additionally, since the multiple businesses in a cooperative are working together, there is fixed pricing and therefore if your business is more specialized and has higher costs than there could be lost profits.