Cooperative (co-op)

Cooperative (co-op)

Cooperative (co-op) Definition

A Cooperative or co-op is a for profit or non-profit entity that is non taxable. It is a form of business that stands to eliminate the middleman in hopes of gaining a larger profit or savings for a group as a whole. This means that the members of a co-op are in charge of making decisions for the entity as a whole.

Cooperative (co-op) Meaning

Cooperatives are often formed to benefit a specific group like a bunch of farmers or residents in a particular building. The advantage is that each member owns a bit of the co-op. Then they reap the benefits by the amount of transactions that take place. Oftentimes, farmers establish these to ensure that there is less competition in pricing. They also do this so the co-operative can make the most out of profits. At the same time, the co-op can purchase items that the group as a whole will need to run each of their individual farms.
For residents living in a building a co-op can be beneficial because it gives each member a share of the equity in the building. The member can then buy more equity or sell for whatever the market will take. Other benefits of a residential cooperative business model include the ability to rent a space for way less than market value. Co-operatives are very well established throughout the world for various other entities. A co-op business can be in the form for utilities and banking institutions, or for agricultural benefits and residences as discussed above.
See Also:
C Corporation
Sole Proprietorship
General Partnership
Limited Partnership


IP Valuation & Monetization For The C-Suite

Intellectual Property (IP) defines and protects the sources of goods and services in the marketplace, the products and services offered for sale and the content surrounding such offerings.  Whether trademarks, patents, copyrights, or other IP, it is critical that C-Suite strategy drives and shapes the creation, valuation use and monetization of all its intellectual property.

Read More »

Financial Ratios

See also: Quick Ratio Analysis Price to Book Value Analysis Price Earnings Growth Ratio Analysis Time Interest Earned Ratio Analysis Use of Financial Ratios Financial Ratios are used to measure financial performance against standards. Analysts compare financial ratios to industry averages (benchmarking), industry standards or rules of thumbs and against internal trends (trends analysis). The

Read More »

Margin vs Markup

See Also: Gross Profit Margin Analysis Retail Markup Chart of Accounts (COA) Margin Percentage Calculation Markup Percentage Calculation Margin vs Markup Differences Is there a difference between margin vs markup? Absolutely. More and more in today’s environment, these two terms are being used interchangeably to mean gross margin, but that misunderstanding may be the menace

Read More »


Financial Leadership Workshop

MARCH 28TH-31ST 2022


Financial Leadership Workshop


August 7-10th, 2023

WIKI CFO® - Browse hundreds of articles
Skip to content