A business organization set up for the mutual benefits of member with similar interest is known as

Step 1: Analyze the question The question asks for a business organization that is set up for the mutual benefit of members who share a similar interest. The key phrases are "mutual benefit" and "similar interest."

Step 2: Explain the concept A cooperative society is a voluntary association of people who come together to pursue a common economic goal, such as farming, trading, thrift and credit, or consumer buying. Its main features are:

• Membership is voluntary and open to people with a common interest (for example, farmers, traders, or workers).
• Control is democratic: one member, one vote, regardless of shares held.
• The aim is to serve members' welfare (cheaper goods, loans, better prices for produce), not to maximize profit.
• Surpluses are shared among members as dividends or bonuses.

Examples in Nigeria are cooperative thrift and credit societies, cocoa farmers' cooperatives in the Southwest, and staff cooperative societies in schools and offices.

Step 3: Check each option

• A. Cooperative society: Formed for the mutual benefit of members with a similar interest. ✔
• B. Partnership: Two or more people run a business to make profit together. The focus is profit sharing, not mutual welfare of a wider membership.
• C. Private limited company: Owned by shareholders (2-50) to make profit, with restrictions on share transfer.
• D. Public corporation: Owned and run by the government to provide public services.
• E. Public limited company: Sells shares to the general public for profit, and shareholders do not necessarily share any common interest beyond investment.

Step 4: Answer The correct option is A. cooperative society.

Exam tip: Whenever you see "mutual benefit," "members," or "common interest" in an Economics question, think cooperative society. Remember: Cooperative = Collective welfare, Companies = Capital returns.