ECONOMICS TOPIC 5 LESSON 4

A cooperative is a business organization owned and operated by a group of individuals for their shared benefit.

characteristics

voluntary and open membership;

democratic control of the organization by its members;

sharing of contributions and benefits by members.

Retail outlets owned and operated by consumers are called consumer cooperatives. They are also known as purchasing cooperatives. Consumer cooperatives sell merchandise to their members at reduced prices.

Cooperatives that provide a service rather than goods are called service cooperatives. Some service co-ops offer discounted insurance, banking services, healthcare, legal help, or baby-sitting services.

Producer cooperatives are agricultural marketing cooperatives that help members sell their products.

Some institutions function much like business organizations but do not operate for the purpose of generating profit. For that reason, they are called nonprofit organizations. Nonprofit organizations have no owner. They are often run by a board of directors. 

Some nonprofits are professional organizations that work to improve the image, working conditions, and skill levels of people in particular occupations.

Organizations called business associations promote the collective business interests of a city, state, or other geographical area, or of a group of similar businesses.

Nonprofit organizations that promote the interests of particular industries are called trade associations.

A labor union is an organized group of workers whose aim is to improve working conditions, hours, wages, and fringe benefits for members.