Cooperative
A cooperative is an organisation owned and controlled by members to meet shared economic, social or other needs. Members may be customers, workers or producers, depending on its form. Governance commonly emphasises member participation rather than control simply in proportion to external invested capital. Exact voting, distribution and legal arrangements depend on the cooperative and jurisdiction.
Worked example
Farmers form a cooperative to purchase inputs and market produce collectively. Its purpose and member-control arrangements shape decisions about services, resources and any surplus.
Common mistake
Do not assume every cooperative is a charity or has no commercial activity. Nor treat all detailed voting rules as universal without checking the form and framework.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | BT | Direct | September 2026–June 2027 |
| FIA | FBT | Direct | September 2026–June 2027 |