Cooperative

Definition

A cooperative is a business organization owned and operated by a group of individuals for their mutual benefit. It operates on principles of democracy, with members having equal voting rights and sharing profits based on their participation.

Related terms

Member: owner - An individual who owns a share of the cooperative and has equal voting rights in its operation.

Dividend: A member's share of the profits generated by the cooperative, typically distributed based on their level of participation or investment.

Mutual benefit organization: An organization designed to serve the interests of its members, similar in purpose to cooperatives but can vary in structure and governance.