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Cooperative Entrpreneurship

Cooperative Entrpreneurship. By: Brad Plaziak , Jack Sanborn, and Darius Beth.

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Cooperative Entrpreneurship

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  1. Cooperative Entrpreneurship By: Brad Plaziak, Jack Sanborn, and Darius Beth

  2. Basically a partnership, cooperative business is when a couple smaller businesses, all focused on the same type of product, put all their money to a specific goal, and work together to make better profits and help each other gain more. • The businesses then deal out the money equally. Definition

  3. Having a cooperative would be very beneficial for a newer entrepreneur because he can work together with other companies to gain resources and money he needs to start his business. • Another advantage is everybody gets to decide, democratically, what they want to put their money towards. 5 Advantages

  4. One of the biggest advantages of forming a cooperative is reduced costs. • Benefits are given to the workers based on how much use the product receives. • How much you make is based on how much ownership or investment you have. More Advantages

  5. Farms • Grocery Stores • Banks • Credit Unions • Housing Cooperatives All of these are good examples of cooperatives because they all combine their money with other businesses of the same views, to make better money and have more competition. Examples of Cooperatives

  6. One disadvantage of sharing a cooperative is that you and your competitors share the same pricing and products. • Forming a cooperative levels the playing field between you and larger corporations, and you and smaller corporations. You will no longer have the “upper hand” on your competitors. 5 Disadvantages

  7. Another disadvantage of a cooperative is that you might lose control over the special individuality of your product. • The larger the cooperative, the harder it may be to compromise and agree on business decisions. • Most often, control of finances is weak due to a lack or a manager or accountant. More Disadvantages

  8. First of all, cooperatives pay special taxes given to all businesses. These special taxes consist of house taxes, sales taxes, employment taxes, gasoline and diesel fuel taxes, license fees, motor vehicle registration fees, and remove taxes on utility services. • Second, cooperatives and their owners pay a single income tax on margins, usually at the owner level. This is the same tax given to most U.S. businesses. IRS Tax

  9. Starting a cooperative usually starts off with two businesses, selling products to the same market, agreeing to combine their money to help each other out and make more money. • This is really the biggest step in setting up a cooperative because from that point on it’s up to the owners to decide on a financial goal with the combined businesses. How To Set Up A Cooperative

  10. Sessoms, Gail. "The Advantages of a Cooperative Business." Small Business. Demand Media, n.d. Web. 10 Dec. 2013. • "Excelsoft - Learnpremium - Business Studies." Excelsoft - Learnpremium - Business Studies. N.p., n.d. Web. 10 Dec. 2013. • Frederick, Donald A. "Tax Treatment of Cooperatives." Tax Treatment of Cooperatives. N.p., n.d. Web. 10 Dec. 2013. Citations

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