What best describes a cooperative?

A cooperative is best described as a type of business organization that is created, owned, and controlled by its members. This means that the individuals who utilize the cooperative's services or products are also the owners and decision-makers. Members typically share in the profits and have a say in how the organization is run, often through a democratic voting process.

The member-driven nature of cooperatives distinguishes them from other forms of business organizations. For instance, corporations owned by shareholders operate based on profit maximization for those shareholders, rather than focusing on the needs of the members. Non-profit organizations, while sometimes serving similar community-centric goals, do not distribute profits to members. Government-run agencies exist to serve public interests rather than through a member-controlled business structure. Thus, the defining characteristic of cooperatives is their mutual ownership and governance by the individuals who benefit from the cooperative's existence.