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IGCSE Economics Characteristics of a Cooperative

IGCSE Economics Characteristics of a Cooperative

 

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Characteristics of a cooperative — quick explainer

Jointly owned by members
  • Members are the shareholders (could be workers or customers).
Mutual benefit of members
  • Exists primarily to serve its members’ shared interests.
Members share profits
  • Surpluses are distributed among members.
Each member has a vote
  • Democratic control (typically one member, one vote).
Limited liability
  • Members’ risk is limited to their investment in the cooperative.
How it all connects
  • Member ownership + voting ensures decisions favour the mutual benefit of members.
  • Profits are shared, while limited liability protects members’ personal assets.
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