What defines a cooperative?

A cooperative is fundamentally defined as a business organization that is owned by a group of individuals who come together for mutual benefit. This structure emphasizes the democratic participation of members, who also share in the profits and responsibilities of the enterprise. In a cooperative, each member typically has equal voting rights, and decisions are made collectively.

The mutual benefit aspect is vital, as it indicates that cooperatives operate to serve the needs of their members rather than to maximize profits for a single owner or a small group of investors. This model is commonly seen in various sectors, including housing (housing cooperatives), agriculture, and consumer goods, where members benefit from shared resources or services.

In contrast, the other options do not accurately represent the nature of a cooperative. For instance, investment trusts and real estate partnerships have different ownership and operational structures, focusing more on profit generation for investors rather than mutual collaboration among members. Moreover, a governmental housing program, while it may provide benefits to certain populations, does not represent an organization owned and managed by its members. Thus, the understanding of a cooperative as a member-owned entity dedicated to mutual benefit is what defines it clearly.