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A cooperative is a business owned fully by a group of people, usually those who patronize the business. They elect a board of directors that oversee the manager who runs the daily operation of the business. It is different from a privately owned business in that profits are distributed amongst the share holders in the form of dividend payments / book credits.
An example can be seen in most rural communities in the local grain coops.
Cenex is a famous coop as well.
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