A utility cooperative is a type of cooperative that is tasked with the delivery of a public utility such as electricity, water or telecommunications to its members. Profits are either reinvested for infrastructure or distributed to members in the form of "patronage" or "capital credits", which are essentially dividends paid on a member's investment into the cooperative. Each customer is a member and owner of the business with an equal say as every other member of the cooperative, unlike investor-owned utilities where the amount of say is governed by the number of shares held.

A utility cooperative is most similar to which of the following types of organizations?

a partnership


Similar to a partnership, in a utility cooperative the members have a say in how the cooperative is run. In the other types of organizations all members do not share in the decision making.

Visit our website for other ASVAB topics now!