Which statement accurately describes purchasing cooperatives?

Purchasing cooperatives are organizations formed by a group of individuals or businesses who come together to leverage their collective buying power. This collaborative approach enables members to purchase goods in larger quantities, which typically leads to cost savings through bulk buying discounts. By pooling their resources, members can reduce expenses on essential inputs, such as seeds, fertilizers, or equipment, thereby enhancing profitability and sustainability for their individual operations.

The essence of a purchasing cooperative lies in the collective buying strategy, which directly aligns with the benefits members receive—primarily cost savings. This collaborative model empowers smaller businesses or farmers who may not have the same purchasing power as larger entities, allowing them to compete more effectively in the market.

In contrast, the other options do not accurately reflect the key characteristics of purchasing cooperatives. While some cooperatives might involve product sales, the main function is not limited to that aspect. The focus on providing services to non-members is misaligned with the cooperative's core mission, which is to serve its members. Lastly, the notion that cooperatives are managed by a single individual undermines the cooperative principles of democratic governance, where decisions are typically made collectively by the members.