What term describes an organization owned by its members rather than outside investors?

The term that accurately describes an organization owned by its members rather than outside investors is "Cooperatives." Cooperatives are established to meet the needs and aspirations of their members, and ownership is typically shared among those members who benefit from the cooperative’s services. This structure emphasizes democratic control, where each member has a say in decision-making processes, which differentiates cooperatives from typical corporate models where profit maximization for external investors is the primary focus.

Limited companies, public sector companies, and mutual associations or funds do not represent the primary characteristic of member ownership in the same way. Limited companies often have shareholders who may not be directly involved in the operations, public sector companies serve governmental functions and do not operate on a member-based model, and while mutual associations or funds may serve their members, they are not characterized primarily by the same principles of democratic member control as cooperatives. Thus, recognizing the nature and structure of cooperatives is essential in identifying the correct term for organizations owned by their members.