Multiple choice

On what basis is dividend declared in a co-operative store to its members?

  1. Share capital

  2. Number of shares purchased

  3. Amount of patronage given

  4. Amount of paid up capital

  5. Equally to all members
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The profit of co-operative society is distributed to the members in the proportion of purchases made by the them, and not on shares held by them. The total amount of your patronage dividend is based upon all the purchases you made during the fiscal year, divided by the total purchases made by all active owners, then the dividend is multiplied by your share (%).

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