COMPARISON OF AN ORDINARY CORPORATION, PARTNERSHIP & COOPERATIVE

PARTICULARS ORDINARY CORPORATION PARTNERSHIP

1 Legal basis of Corporation law Partnership Law
organization

2 Primary purpose/ Profit profit

motivation

3 Basic requisite for Ability or capacity to buy shares of Ability or capacity to invest or
membership stock render service

4 Customer Generally non-members Generally non-members

5 Basis of voting Shares of common stock equal voting rights

6 Components of Board of Directors & hired Management is shared equally

management
7 Principles governing
operations
8 Rate of Interest on Capital
management by all the partners unless one is
appointed in the Articles of
Partnership
Business Management Principles Partnership Principles governed
by the stiupulations of the
parties
no limit no limit
 9 Basis for distribution of Shares of stock based on partnership agreement
savings/profit or pro-rated to their

10 Educational Program practically none none

& COOPERATIVE

COOPERATIVE

R.A. 9520

Service above profit. What

is there is an excess or over-
payments for the goods &
services
can make use of the
services of the co-op and
willing to accept
responsibilities of
membership.
member-users

one-member, one vote in

primary cooperative

members, Board of
Directors & hired
management

Cooperative Principles &

Business Management
Principles
limited & conforms to
government regulations
share of stocks & patronage
or volume of business
contributed by the
members
continuous cooperative
education program for
those within and outside of
the movement