Simple English definitions for legal terms
Read a random definition: fair hearing
Co-operative (Co-op): A type of business where people work together to meet a common need. It's different from other businesses because it's run democratically, which means everyone has a say in how things are done. Co-ops can be found in many areas of the economy, such as stores, utilities, banks, housing, agriculture, and work.
A co-operative, or co-op, is a type of business organization that is typically governed by state law. However, some federal laws may also apply to certain co-ops. Unlike corporations and other business entities, co-ops are essentially democratic in nature and focus on meeting the common needs of their members rather than fulfilling the fiduciary needs of shareholders.
Co-operatives can be found in various sectors of the economy, including:
For example, a consumer co-op like a food store is owned and controlled by its members, who have a say in the store's operations and share in its profits. Similarly, a housing co-op allows its members to collectively own and manage their housing, providing affordable housing options. These examples illustrate how co-operatives prioritize the needs of their members over the interests of shareholders.