Which of the following is a key feature of cooperatives?

A key feature of cooperatives is that they are controlled democratically by their member-owners. This principle ensures that each member has a voice and a vote in decision-making processes, typically adhering to the one member, one vote rule, regardless of the number of shares they own. This democratic governance structure is designed to empower members and reflect their collective interests, aligning well with the cooperative's goals of serving the needs of its members rather than maximizing profits for external shareholders.

By contrast, profit distribution only to shareholders implies a structure focused on investor returns rather than member engagement, which is contrary to the cooperative model. Similarly, decision-making power based on the number of shares owned deviates from the democratic essence of cooperatives, where influence is equal among members regardless of their financial investment. Finally, management appointed by external parties is at odds with the cooperative principle, as it undermines member control and involvement in key organizational decisions. Overall, the democratic control by member-owners is central to the cooperative's identity and operational philosophy.