Search results
Results from the WOW.Com Content Network
A cooperative can have different assets from which it can get money without having to sell those assets. For example, if the cooperative has money in the bank, and the bank gives interests, it can generate some more money. Or for example, if the cooperative owns a place and rents it, it can get some more money out of it. [96]
[2] A "patronage dividend" is money paid by a cooperative to its patrons on the basis of business done with these patrons, pursuant to a pre-existing obligation, and based on the net earnings of the cooperative from the business done. [3] In practice, cooperatives typically charge their members for services and refund the profits proportionately.
Arla Foods is a Swedish-Danish cooperative based in Aarhus, Denmark, and the largest producer of dairy products in Scandinavia.; Coop Norden (Coop Nordic) was a joint Scandinavian purchasing company that in 2007 dissolved and devolved to the constituent national cooperatives.
Cooperatives as a form of business organization are distinct from the more common investor-owned firms (IOFs). [1] [5] Both are organized as corporations, but IOFs pursue profit maximization objectives, whereas cooperatives strive to maximize the benefits they generate for their members (which usually involves zero-profit operation).
Retailers' cooperatives are governed by democratic member control, which generally means one vote per member. Some firms, such as E. Leclerc, are able to make decisions in this fashion, with each member business only receiving one vote. [1] For many retailer co-ops, however, it is difficult to achieve a democratic standard. [3]
The major difference between consumers' cooperatives and other forms of business is that the purpose of a consumers' cooperative association is to provide quality goods and services at the lowest cost to the consumer/owners rather than to sell goods and services at the highest price above cost that the consumer is willing to pay.
Cooperative members often engage in multiple contracts and projects over time, fostering ongoing partnerships. This can lead to additional business opportunities, repeat contracts, and a more stable revenue stream for businesses. The cooperative environment encourages relationship-building and the cultivation of sustainable business connections.
The International Cooperative Alliance (ICA) was formed in 1895 [9] and National Cooperative Business Association founded in 1916. The post-WWII era experienced a decline in interest towards cooperatives in the economics profession, with much lower quality and quantity of the discussion on cooperatives in economics text books published after ...