Definition - What does Cooperative (Co-Op) mean?
A cooperative is an organization that is put together by people who are working toward a shared goal. Cooperatives are typically economic endeavors. These endeavors usually include a sharing of both responsibilities such as advertising and distribution, and also a sharing of profits. Cooperatives can be put together by people such as farmers, manufactures, etc.
Justipedia explains Cooperative (Co-Op)
The purpose of a cooperative is for people with similar interests to share the load and help each other for the goal of increasing efficiency. So, for example, a number of tomato farmers in an area may form a cooperative in which they work together to help each other obtain success.
In this cooperative, one farmer may do the marketing while another farmer may focus on transportation, and another may focus on sales. Once the profits have been made, the cooperative may split the profits equally, or according to the efforts made by each person.