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Why is excessive control of an outside trader risky in an artisan cooperative?

Answer and explanation

Correct answer: Artisan decisions, pricing and benefit share may weaken

The direct answer is A: excessive control by an outside trader can weaken artisan decisions, pricing power and benefit sharing. A cooperative is formed so that members jointly own or control the activity and participate in important decisions. Artisans should have a voice in what is produced, how much it costs, where it is sold and how the surplus is distributed. If an outside trader controls the cooperative too strongly, members may become dependent. The trader may influence prices, purchase products cheaply, or take a larger share of the earnings. Thus member autonomy and bargaining power can decline. Option A correctly describes this risk. B is wrong because outside control does not always strengthen artisan democracy; it may reduce it. C is wrong because fair distribution does not happen automatically when power is unequal. D is wrong because identity may not increase and could even be weakened. Exam cue: a healthy cooperative means member ownership, participation, transparency and fair sharing.

Related tags

Home-ScienceCooperative-RiskExternal-ControlMember-Autonomy

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