A co-operative is a business which is owned and run by its members, who are the people who benefit from its services. Co-operatives usually work for the benefit of its members and society in general.
- are usually involved in the running of its activities
- share in the profits and benefits of the organisation
Examples of Co-Operatives
In Ireland and the UK, farmers often came together and to form agricultural co-operatives. These co-operatives purchased the milk the farmers produced, and sold them the necessary supplies they needed for their farms, such as fertiliser.
Co-operatives on the ACCA F1 exam
In the ACCA F1 exam, you may be asked to differentiate between a co-operative and another type of business organisation (e.g. a public company). Both of these organisation types are run in a similar manner, but the ownership of a co-operative may not be transferred easily, and each member gets one vote (as opposed to one vote per share in a PLC).