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JAMB Commerce 1998 Question 6

Question 6

Co-operative Societies

One advantage the co-operative society has over the ordinary company is that the

  1. A.latter pays tax while the former does not
  2. B.former attracts more capital than the latter
  3. C.membership of the former is usually more than that of the latter
  4. D.former, unlike the latter, has limited liabilities.
Show the answer and explanation

Answer: A (latter pays tax while the former does not)

Explanation

Registered cooperative societies are exempt from company income tax, while companies pay it.