Co-operatives refer to a form of business that is set up and operated by a group of people for their own benefit. These are people who come together on their own will and do not do so under any sort of compulsion or rule. Every person makes an equal contribution and has equal rights. It is for the mutual benefit of the members that a co-operative functions. This form of business is a legal entity and thus, recognized by law. The co-operatives may be broadly classified as a producers co-operative or that of consumers.