What kind of business is owned by its workers who share profits and liabilities equally?

A cooperative is a type of business that is owned and operated by its members, who are often also the workers. In a cooperative, each member contributes to the management and decision-making processes, ensuring that all voices are heard. The profits generated by the cooperative are shared among the members based on their contribution or use of the services, rather than in proportion to the capital they invested. This model promotes a sense of community and collaboration, as all members have an equal stake and are involved in the governance of the business.

This differs from other business structures such as sole traders, partnerships, and corporations, which do not necessarily emphasize worker ownership or shared profit distribution in the same way. Sole traders are single-owner businesses, partnerships involve shared ownership but may not equally distribute profits, and corporations are owned by shareholders who may not be involved in day-to-day operations.