What is a cooperative?

A cooperative is primarily characterized as a non-profit organization that is owned and operated by its members for mutual benefit. The fundamental purpose of a cooperative is to serve its members rather than to generate profits for external shareholders. In this type of organization, members typically contribute to the cooperative's initiation and operations, receiving services, goods, or benefits in return.

Cooperatives are often formed around a shared need or interest, such as agricultural production, healthcare, or retail services, emphasizing democratic control. Each member usually has equal voting rights, ensuring that decisions are made collectively. This structure promotes participation and fosters community engagement among members.

The other options don't align with the concept of a cooperative. For example, a for-profit organization is designed primarily to generate income for its owners or shareholders, which contrasts with the cooperative's focus on member benefit. An investment club involves individuals pooling funds to make collective investment decisions but does not typically adhere to the non-profit model nor operate in the same manner as a cooperative. Similarly, a governmental agency functions to implement policy and provide public services rather than to serve as a cooperative entity focusing on mutual benefit among its members.