Cooperative is the organization whose owners join forces to collectively operate all or part of the functions in their business.
Cooperative is an enterprise created and owned jointly by its members and operated for their mutual benefit.
The cooperative may be a group of consumers with a common interest or small producers whose objective is to gain greater economic power. By banding together the members enjoy the benefits of large-scale operations, for goods and services can often be bought cheaper and sold more profitablyin large quantities.
Some cooperatives are groups of consumers who combine their buying activities to receive quantity discounts and thus reduce their costs. Members also benefit from owning or controlling the facilities that make or sell the goods and services they desire. Many farming communities have cooperative stores that sell feed, seed, fertilizer, and equipment to members. There are also cooperatively owned houses and apartment buildings, groups health plans, insurance companies, and funeral homes. Some groups have created cooperatives that buy food in large quantities and sell it to members at low prices.
Cooperative also exist for producers. Business owners have formed producer cooperatives to buy supplies more cheaply and sell products more profitably. Such cooperatives are most common in agriculture and also appear, though less frequently, in the fishing and petroleum industries.