A cooperative, or co-op, is an organization owned and controlled by the people who use the products or services the business produces. People typically join a cooperative business to enjoy the benefits of group purchasing, pooled risk, and the empowerment of owning and controlling the company.
For example, you may belong to a co-op that purchases raw materials that are used in your business. As a co-op, you and the other owners can buy such raw materials at a collective lower price then you could individually. A co-op payment might include your part of the cost of a storage facility to store those raw materials.
