However, there are important distinctions that make co-ops unique. As owners, they provide the capital necessary for start-up and growth of the business. Members control their co-ops. Each member usually gets one vote, regard less of the amount of equity they have invested in the co-op. The board of directors is elected by the membership.
Members benefit from their co-ops.
Profits are distributed to the members in proportion to each member s use of the co-op. The owners of IOF s may never even use the products or services their company produces. In fact, many IOF s are capitalized by investors whose primary motivation is obtaining the greatest return on their investment. Co-op members want to generate the highest possible returns on their investment as well, but they do it by addressing their common problem. The chart that follows helps distinguish between different types of business organizations, including co-ops.