Which statement is true when Leo wants to sell his membership share in a cooperative?

When Leo wants to sell his membership share in a cooperative, it is essential to understand that cooperatives typically have specific rules governing the sale of shares to maintain control over who can become a member of the cooperative.

The principle behind requiring approval from the cooperative board before a sale is to ensure that the new member fits the community's standards and that their financial and social compatibility aligns with the cooperative's goals and practices. This process helps protect the interests of current members and maintains the cooperative's overall integrity and stability.

In contrast, the other statements do not reflect this necessary procedure. Allowing Leo to sell his share to anyone without board approval could lead to issues regarding the financial stability and community dynamics of the cooperative. Additionally, the requirement for a potential buyer, like Mariah, to submit an application is part of the due diligence process that helps the board assess the suitability of the new member. Thus, the correct answer emphasizes the crucial role of the cooperative board in the sales process, reinforcing their authority and the importance of maintaining community standards.