Question 5
Co-operative SocietiesWhich of the following investors earns profit on the basis of his patronage?
- A.debenture holder
- B.partner
- C.sole proprietor
- D.co-operative member
- E.shareholder
Show the answer and explanation
Answer: D (co-operative member)
Explanation
Co-operative societies share surplus to members as a patronage dividend, in proportion to how much each member bought from the society.