Differences Between Similar Products
May 11, 2011 by Lyka Ricks
What are the differences between Corporation and Cooperatives?
In general, corporation and cooperatives are both business entities, having legal rights and are owned by a single person or a group of people created to serve the interests of others.
A corporation can be defined as a legal personality, existing as a product of corporate law, which aims to promote the interest of the shareholders and its employees while providing services and products to the general public. A cooperative, on the other hand, is an organization set up mainly to facilitate its constituent’s interests.
In a cooperative, people join to create an organization designed to serve the common good of its members without the intent of profit while in the case of corporations, profit is the main objective of the shareholders that invests in them.
Another difference is that in a cooperative, the shareholders are the same persons who work collectively to operate the association, whereas in a corporation, the role of the shareholders is to provide the finances needed to operate the business . The management is now left on the hands of the business professionals together with a team of business-related employees.
A corporation serves the welfare of the general public while gaining profit, whereas a cooperative is organized for the mutual benefit of the members. A corporation offers various products and services in exchange for gaining profit which in turn results in a mutual relationship between seller and consumer. In a cooperative, only the members can experience the organization’s assets and resources. In short, a corporation serves a wide range of people while a cooperative serves merely a few.
A corporation can be run by a sole businessman together with a team of employees or a group of businessmen and stockholders while cooperatives are usually run by a group of people of different backgrounds.
To summarize, a corporation is equivalent to capitalism while a cooperative equals to socialism. Both entities have distinct features and each having their own advantages and disadvantages. Depending on the benefactors, both organizations aim to serve the welfare of the community.
Business is one broad industry that runs from lowest rank among the employees towards the highest ranking officials such as the owners and prominent stock holders. As broad as it is, business continuity planning (BCP) and disaster recovery (DR)” rel=”nofollow”>business es may come into several kinds, greatly depending on the purpose and reason for the establishment of such business . Two most common forms are termed as corporation and cooperatives. Considering the general and most accepted definitions of these types, cooperatives and corporation bears distinction from one another, despite the common misconception that they mean one and the same.
One of the most subtle disparities between corporation and cooperatives is their primary drive for being a business firm. While corporations are driven by the common goal of earning and gaining undisputable gains and benefits, cooperatives focus more on making significant contributions to the public.
Apart from that, these two types of businesses bear distinction by the subject of interest. While cooperatives delve on gaining attention from the society with an unrelenting impact to the various situations and circumstances, corporations take practical concern to the investors and shareholders of the business per se.
More so, corporations differ from cooperatives in the sense that the former can be formed even with only a few numbers of people whereas cooperatives are usually initiated by a group of peoplewhich share a common goal and outlook in life. In corporations, it is only the concept of profit that puts them together.
Another discretion that can be made between corporations and cooperatives is the set of values and principles that they uphold. While corporations tread on discipline, proper work orientation and authority, cooperatives highly uphold the values of cooperation, passion and selflessness.
Corporations and cooperatives these days have evidently grown into contributing to the world in their own unique ways.
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