Define the term 'co-operatives'.

Mark scheme

Marking points from the official mark scheme (May/June 2021). The mark or mark type is shown in brackets.

1. [1] co-operatives are businesses that are formed/owned/controlled by its members
2. [1] operated in the interests of the members
3. [1] members might be employees, customers, or other groups such as farmers
4. [1] there are producer/worker cooperatives and consumer/retail cooperatives
5. [1] members contribute to running/managing the business and making decisions
6. [1] may have voting rights / share profits
7. [1] the expertise, assets and knowledge of the market of both businesses can be brought together.
8. [1] the existing customer base and reputation of either/both businesses can lead to higher sales and revenue.
9. [1] cheaper than one business developing a new product/service on its own because the costs are shared.
10. [1] each business can retain its own legal identity so there is no loss of control for the individual businesses, depending on the terms of the joint venture.
11. [1] the risk of undertaking a new project is reduced due to the contribution of more expertise from two businesses and by sharing resources and costs.
12. [1] Accept any other valid response.