Co-operative Associations - Frequently Asked
Questions
How Does a Co-operative Differ from Other
Businesses?
Traditional businesses aim to make profit
for the shareholders, who receive their
share of that profit according to the amount
of money they have invested in the business.
Control of the business is also based on the
amount of money invested, usually one vote
per share purchased.
In a co-operative, each members has one vote
no matter how many shares they have
purchased. The members elect a Board of
Directors who hire and supervise the
management of the co-operative. Through
their elected Board of Directors, the goals
and needs of the members are developed into
clear policies which guide the operations of
the co-operative to ensure that the members
receive the goods and services they desire.
Are There Different Types of
Co-ops?
Yes! Most of us are familiar with co-operatives
in one form or another – financial (credit
unions), service (housing co-ops), consumer
(co-op retail stores) or producer co-ops (craft
and artists’ co-ops) and worker co-ops (members
are the employees). All these co-ops supply
services (credit, groceries, marketing) to
members.
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